It has been a while since we heard from SocGen’s uber-soothsayer Albert “Ice Age” Edwards. He is now back, and with quite a bang, reiterating a line from Marc Faber that will prove 100% accurate in a few short years. The French bank’s forecaster, who has proven accurate in his prediction of the Asian Financial Crisis and the tech bubble bust in the 1990s, has made his call again that the S&P 500 will go down to 500 points within the next 18 months. Apparently, he claimed that what the Fed did with the QE3 was somewhat a repeat of what the Fed did in 2007. He also predicted that there will be a China hard landing, seeing an underlying growth in China sliding to as low as 3 - 4%.
Deja vu? “the last time I reduced my equity weighting to 30% was 8 May 2008 when the S&P was stlll standing ......