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?