Nomura: We Are Headed For A Second “Lehman-Like Shock” Selloff

However, for three specific reasons, Nomura expects any near-term rally to be no more than a head fake, and thinks that any such rally would be best treated as an opportunity to sell in preparation for the second wave of volatility that the bank expects will arrive in late August or early September. Worse, Takada warns that “the second wave may well hit harder than the first, like an aftershock that eclipses the initial earthquake. At this point, we think it would be a mistake to dismiss the possibility of a Lehman-like shock as a mere tail risk.”