ALBERT EDWARDS: ‘CONDITION RED ALERT’ — a recession(depression) is imminent

Bob Bryan
BusinessInsider.com
June 10, 2016

Albert Edwards thinks that the US economy is about to hit the rocks – hard.

This may not be surprising for anyone who follows Societe Generale’s admitted perma-bear, but according to Edwards’ latest weekly commentary, the signals for a recession are mounting.

Edwards said in his Ice Age thesis, the idea that we’re in the midst of a multidecade downturn for stocks and financial assets, spotting recessions is the biggest key to surviving the cold.

“The key to the Ice Age thesis is to sound CONDITION RED ALERT as each recession approaches, because the equity outcome then always proves much worse than anyone expects due to the additional phase of secular de-rating,” the strategist wrote in a note to clients Friday.

Based on Edwards’ reading of the latest data out of the US, it appears that it is time to sound the alarm. Here’s Edwards (emphasis added):

In the aftermath of the latest, weaker than expected, nonfarm payroll data, economists are certainly more worried. The excellent folks at Advisor Perspectives highlight the Fed’s Labour Market Conditions Index as suggesting a recession is imminent (the cumulative peak is an average of 9 months ahead of the start of recession and we are now four months beyond a peak. For investors who think copper still has some predictive power, its recent move is disturbing.

The Rest…HERE

This entry was posted on Friday, June 10th, 2016 at 9:30 am and is filed under Conspiracy, Corruption, Economics, God Help Us, Government Evil, New World Order. You can follow any responses to this entry through the RSS 2.0 feed.