The Ice Age Is Driving The Equity Factor Bubble. And Albert Edwards Says ‘Disaster Awaits’

SocGen's Albert Edwards on Tuesday weighed in on the tight link between the vaunted "duration infatuation" and various factor bubbles in equities, a hot topic in 2020. "Anaemic economic growth and low inflation are keeping bond yields at Ice Age levels", Edwards writes, noting that "these same low bond yields are driving valuation extremes within the equity market last seen in the late 1990s Nasdaq bubble". Let's briefly review. The market’s love affair with bonds went into hyperdrive las

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2 thoughts on “The Ice Age Is Driving The Equity Factor Bubble. And Albert Edwards Says ‘Disaster Awaits’”

A bit scary. What should we do to protect ourselves?

Tech is absolutely more exposed to econ growth than the current valuations/perception.

But value stocks need econ growth to rally.

Most individual investors will not have a pairs trade on.

Chris be smart and understand what you own, the earnings leverage, the financial leverage, the competitive positioning, the valuation/intrinsic value, etc.

Find a great financial advisor, great portfolio managers, do the homework (one or all of the above). Be humble, don’t be greedy.

And read as much as possible and never blindly follow someone’s advice. Be a chef, take the ingredients, and make a delicious meal (portfolio) tailoring to your tastes and tolerances.

Hope that helps a little. Good luck and enjoy.