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Despite a generally positive outlook, illustrated by a global recovery, strong earnings and low unemployment in developed nations, disaster could be looming, Francesco Filia said. The chief executive at London-based Fasanara Capital warned the frequency of major market corrections and the historically high debt-to-GDP levels encumbering some of the world’s 10 biggest economies were major danger signs. Mr Filia accurately predicted the sudden and dramatic market correction in February this year when trillions of pounds were wiped from the value of stocks across the globe. In a client note, the asset manager warned: "The signposts of a potential market crash are coming in with increasing hubris.”

Francesco Filia has identified warning signs of an imminent global financial crash

The signposts of a potential market crash are coming in with increasing hubris Francesco Filia

Mr Filia said the increase in the frequency of value-at-risk shocks - sudden market corrections - demonstrated how fragile global markets currently are, CNBC reports. His client note identified the VIX global volatility index spike in February combined with a potentially devastating economic crisis in Turkey as early warning signs of "system instability of the broader financial network”. He likened the current state of financial markets to a “china shop”, warning there are “several elephants” inside which could quickly cause disaster. He concluded: "If this view is right, a critical transition and a moment of final rupture for global markets may then loom ahead."

The worst stock market crashes in history Wed, May 17, 2017 We have been witnesses to some of the worst stock market crashes ever known Play slideshow Getty Images 1 of 9 A stock market crash is a sudden dramatic decline of stock prices

The continued fall of the Turkish Lira was one of the warning signs identified by Francesco Filia

The majority of analyst reports for global markets are far more positive, forecasting continued growth as investors continue to drive prices up in the current bull market. But Mr Filia’s Fasanara Capital was correct in predicting the dramatic market correction in early February when stocks tumbled. Speaking several weeks before the sudden drop, Mr Filia warned overheated markets were “on the edge of chaos”.

US stocks tumbled in February in a major market correction