“What worries you the most?” “What keeps you up at night?” I get these questions a lot from investors looking for insight into what might cause the next market correction. These questions are even more in focus now, given the drop in global markets that we witnessed on Thursday.

As I’ve said before, the global equity market faces a number of risks. However, the risks I worry about most are those that aren’t completely reflected in relevant asset prices. In other words, if these scenarios occur, investors aren’t being compensated for any resulting violent market reaction. Here’s a look at four such risks.

1. The risk of a U.S. slowdown — not discounted in U.S. valuations.While U.S. valuations currently look reasonable, they’re predicated on a U.S. economy growing at around 2% to 2.5%. The risk of slower growth ...