Tuesday, November 10, 2009

Société Générale's Albert Edwards: "...Sees Market Lows Next Year"

Mr. Edwards has pushed the time frame out from this June '09 prognostication, "More on "Société Générale's Albert Edwards "New Stockmarket Lows 2nd half of 2009"'"
From ABC News:
Albert Edwards, a top analyst with French bank Societe Generale, expects global markets to hit a new low in 2010, adding that he would not be surprised if the global economy enters another recession next year.

Edwards, one of the leading equities bears and a long-term critic of the policies of Western central banks, is skeptical of popular opinion that extreme policy response will safeguard the West against a repeat of Japan's lost decade of the 1990's.

Edwards said he expected that at some point China would go into recession, calling people's excessive faith in growth stories a "sick joke.">>>MORE

From Reuters India:

Albert Edwards, an analyst at French bank Societe Generale (SOGN.PA: Quote, Profile, Research) who correctly predicted the Asian financial crisis, sees global equity markets at a new low and chances of another global recession in 2010.

Edwards, a prominent equities bear and a long-term critic of the policies of Western central banks, is sceptical of popular opinion that extreme policy responses will safeguard the West against a repeat of Japan's 'lost decade' of the 1990's.

"People should question the happy clappy nonsense from sellside analysts," London-based Edwards, a global strategist with SocGen's Corporate & Investment Banking group, told a media briefing.

"We are not saying that people should not participate in the rallies -- that will get you fired as a fund manager -- but they should not become too convinced of the recovery," he said.

Edwards is more worried about Japan in the near term as he expects the world's second-largest economy to run into difficulty funding itself next year as demand for Japanese government bonds wane and bond yields rise further. Continued...

Recent posts that mention M. Edwards:

"Société Générale's Albert Edwards "New Stockmarket Lows 2nd half of 2009".

The Shape of Things to Come: "V Defies Economic Pessimists Seeing L, U, W"

"Eat your heart out Albert Edwards": Royal Bank of Scotland Calls for 550 S&P (and: "South Sea Bubble Redux")

[Société Générale's] Albert Edwards On The Upcoming Economic "Abyss"

Climateer Line of the Day (Société Générale's Albert Edwards edition)

Société Générale's Albert Edwards: "Stocks Drop May Turn Into ‘Rout’ as Economy Peaks"