Marketwatch has an article today showing heavy volume among investors that are running for cover. Fear is back! And the price of Federal bonds confirms it also. Treasuries have been rising steadily since late April!
Friday, May 13, 2016
The Equity Exodus
Sunday, May 8, 2016
Albert Edwards: "It ends badly."
"Let me tell you how all this ends.
"It ends with investors accepting that they can pretend no longer and profits are sliding into recession.
"It ends as the equity market spirals into a deep bear market as
company management reach the end of the road in the face of the
recessionary conditions and 'kitchen sink' years of EPS manipulation.
"It ends as corporate bond spreads explode as years of excess debt
accumulation lead to widespread corporate bankruptcies, making the
recession much deeper.
"It ends with social unrest and double digit budget deficits (again).
"It ends with investors losing faith with the Fed as the resumption of QE proves ineffective in reviving the economy.
"It ends in deeply negative interest rates, currency and trade wars, helicopter money and ultimately inflation.
"In a nutshell, it ends badly."
--- Albert Edwards, Societe Generale