Tuesday, July 1, 2008

Edwards On The Great Unwind

FT Alphaville » Blog Archive » Edwards: “We see a y-shaped global recession. We are going down before looping backwards”

Conversation with Albert Edwards of SocGen.

As for equities:

A deep recession will result in a profits
slump. Coupled with an Ice Age P/E contraction, we see global equity
markets falling some 70% from their Oct 07 peak. I expect the S&P
to bottom around 500 (verses the 1,575 peak) and FTSE around 3,000
(imagine where consumer confidence will be if equity prices do

Isn't that a rosy scenario?

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