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Investors should prepare for a “downside correction” in equity markets in September or October, according to one market strategist.

With major stock markets around the world posting an unprecedented recovery in recent months, many commentators have questioned the sustainability of the rally given the external economic risks from the coronavirus pandemic and geopolitical tensions.

Speaking to CNBC’s “Squawk Box Europe” on Wednesday, RW Advisory Strategist Ron William argued that the market is currently beholden to “asymmetric risk” on technical, seasonal and political fronts, identifying a break below 3,000 points on the S&P 500 as the “downside trigger.” The U.S. benchmark currently sits at around 3,257 points.

“The Nasdaq is obviously the most overbought and certainly not representative of the U.S.A and not the world,” William said, adding that the U.K. was “bottom of the list” in terms of RW’s risk-ranking metric, while China’s recent overbought condition has now unwound.

“I would suggest that everyone get ready for an August peak and a September or October correction, if not a protracted rolling W crash into year-end,” he added.

Reference: CNBC