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‘Try 8X Instead’: As Market Crosses Another ‘Ice Age’ Milestone, Albert Edwards Looks Ahead
It must have been tough for SocGen's Albert Edwards to decide what to write about on Thursday.
After all, this week found the Fed bowing to the bond market and delivering a 50bps "emergency" rate cut, the first inter-meeting move since the crisis. That decision was widely panned, and nobody is as adept as Albert when it comes to criticizing central banks.
Then again, 10-year US yields made history this week, falling below 1%, and the 30-year TIPS yield fell below zero. To say those milestones
I know this is only a dream, but if the American economy is to be served by the Fed Powell and his appropriate colleagues need to each grow a pair, come to the regular March meeting and raise that damn rate back to where it was before every senior, insurance company and pension fund is totally crushed. All they have to do is say, “My bad, never mind” and just pull the damn trigger. The rest of the world didn’t rush to the edge first, just us. Enough already. I have never seen so much panic over nothing, most of it based on misinformation like the Stable Genius’s “hunch” about the data. I feel like I’m in a cartoon where the elephant sees a mouse and tries to jump up on a table while crying, “eek.” . Come on folks, fix this bonehead move!
If PEs go t 8X won’t the dividends go up? CapApprec way down but still income? That is unless the company is carrying too much debt? If I’m wrong someone straighten me out!