Market participants know that the risks in the markets are...

Market participants know that the risks in the markets are mounting because
1. market mania on NVIDIA is resembling peak period associated with Cisco and the dot.com bust
2. the risk of US and global recession is ticking higher with every passing day
3. the Fed could be tipping the economy into a recession with higher for longer rate policy
4. geopolitical risks rising - in Asia, Ukraine, Middle East and in the forthcoming US election
5. stocks are reaching overvaluation levels
6. A CRE (commercial real estate) crisis is just waiting in the wings
7. the consumer is hurting and running out of money
8. the Japanese economy and bond market is shaky and having to address an inflation problem
9. global trade is being politicised and free trade is giving way to mercantilism and protectionism, which will be a drag for the economy and business.

Yet, they want to completely ignore the risks because since the equity market is aware of them and has not sunk or collapse, able to climb a wall of worries and that is good enough reason for us to ignore it.

It is like a house that you know where a serial killer lives, but one in which you are told you can frequent often to find periods where cash is stored for the taking. Rather than avoiding the house altogether because of the risk of facing the serial killer, or wait until the killer is caught by the cops, we would rather chance our visit to get the cash. And when it becomes often enough that we could walk out with the cash, we become confident that the killer would not emerge. The thing is the serial killer has been in the premise all the time, it was just that there was no confrontation during those visits that appeared like a walk in the park. As it turned out, the killer was self sedated from drug use and then on the next visit, we got a big surprise when he emerged.

That is the type of risk we are at now. We should not be surprised, the conditions are there, we are only waiting for the catalyst and/or conditions to deteriorate to that level adverse enough to give rise to the Event.