ALBERT EDWARDS: HAHAHAHA, The Bulls Aren’t Laughing Anymore, The Stock Market Will Collapse And All Hope Will Be Lost
May 31, 2012
In his latest note, SocGen’s famously bearish Albert Edwards looks around at interest rates falling all over the place and Europe in chaos, and gives himself a good chest-beating, while mocking the equity bulls for yapping about how cheap stocks are.
He’s clearly feeling pretty good about the way things are turning out, writing: “For 15 years we were told the West is nothing like Japan. We agree. It is worse!”
The whole thing is really captured here:
As 30y German Bund yields slide below 2% and rapidly converge towards Japanese rates, we have a taster of what is to come in the US and UK in the months ahead. We still see US 10y yields – even now making new all-time lows – falling below 1% as hard landings occur in China and the US. The secular equity valuation bear market began in 2000 and renewed global recession will be the trigger to catalyze the third, and hopefully final, gut-wrenching phase of valuation de-rating. Expect the S&P500 to decline decisively below its March 2009, 666 intra-day low. All hope will be crushed.