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Nobody Has Tried To Punch Albert Edwards Lately, But That Doesn’t Mean IT Stocks Won’t Crash
Around the time the tech bubble burst, Albert Edwards was very nearly assaulted during a meeting for suggesting that "much of the growth universe was in fact industrial cyclicals masquerading as growth stocks".
"I cannot express just how controversial these views were in 2000 at the end of the TMT bubble", Edwards writes, in a note out Thursday. "The pushback was fantastically hostile, and I remember one meeting when my former colleague and Chief Economist, Ian Harwood intervened to save me fro
And Amazon fell….
It took years of excess for the bubble to finally burst in 2001.
The pertinent question to ask is how close are we to the moment of truth.
The key difference is the Fed. If the Fed were raising rates right now and if there were any threat of inflation, Albert would be spot on, but the Fed is currently going the other direction, and inflation seems to have gone the way of the Norwegian Blue.