Three things could cause a 'second wave' in the market sell-off

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The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses, writes Nomura.

"Investors should be focused on the potential downside for global equities in the near term, given that sentiment is still pointing down," writes Masanari Takada.

The combination of mounting recession fears, bets on a more cautious Federal Reserve and a regular uptick in market volatility at the end of May may be too much for equity investors to withstand, wrote Nomura strategist Masanari Takada.

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