The bear in a bath27 September, 2012, 17:09. Posted by Zarathustra
Albert Edwards that is, having a bath with the equity market, perhaps. In style.
That looks rather posh, isn’t it? Source: Société Générale
From Société Générale:
I’m reading some insanely stupid stuff at the moment. Okay, I know some of my writing is pretty insane, but when I read direct quotes and commentary about Bernankes policy of driving up asset prices in general and equity prices in particular, I almost want to cry over the ludicrousness of this position. The Fed is pursuing the same road to ruin as it did between 2003-2007. Im becoming more and more convinced that, Gloom, Boom, & Doom’s Marc Faber is right when he says that the Fed will destroy the world. (Also keep your eyes open for Dylans next Popular Delusions.)
I agree with Philadelphia Fed President Charles Plosser, who dared to suggest the Emperor had no clothes by saying that QE, including the banks purchase of $40bn a month of mortgage bond purchases, was unlikely to do much to boost growth and decrease unemployment.
Regular readers will know that in the main, my market timing is unerringly inaccurate, normally months if not years too early. But for those who might write off this move down to 30% as the yet more rantings of a lunatic, the last time I reduced my equity weighting to 30% was 8 May 2008 when the S&P was stlll standing at 1400.