"I think overall we have been pricing in for Goldilocks and we are closer to Frankenstein to be honest," warned Steen Jakobsen, Saxo Bank's outspoken chief economist, during an interview with CNBC, and that divergence from reality could mean markets face a 25-30% correction from a potential sudden recession scenario.

Jakobsen cited several factors including growing credit-card loans (and soaring delinquencies), a widening fiscal deficit in the U.S., doubts over infrastructure spending plans, and a potential trade war.

All the data we've seen over the last few weeks has basically been that the consumer is maxed out, we've seen that in credit card loans as well, so I think the consumer is done spending the money."