Market forecasts and investment banks
Cognitive dissonance
"DON'T believe the doom merchants" is the headline on the latest piece from the asset allocation team at Societe Generale. This is the same Societe Generale whose strategist, Albert Edwards, has a target for the S&P 500 index of 400. It is currently at 1,278.HT: FT Alphaville
One has to admire Albert, who has been plugging a bearish line at investment banks for well over a decade, even though such places are normally dominated by bulls. The banks make more money when equity markets are rising, so do the strategists and so do the clients. At times, Albert has looked out of touch but he has stuck to his guns and, broadly, he has been right; the last decade has been better for bond investors than for equity holders. Along with his colleague Dylan Grice, Albert has regularly topped analysts' polls....MORE
Random prior Albert post:
Société Générale's Albert Edwards: "I Have Been Wrong – I’ve Been Too Bullish" (Jan. 17, 2011)
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