Albert Edwards Sees Overconfidence In Forward Rates

The US stock market has almost fully recovered from its mid-month drawback now that continued QE seems to at least be on the table, and not only is Societe Generale strategist Albert Edwards troubled by ‘grotesque, QE-fuelled market overvaluation’ he thinks that investors are overconfident in central banks’ ability to keep a lid on the business cycle. “The problem is that, at these stratospheric valuations, the market does not need to suffer an actual recession to see a crash. Like October 1987, just the fear of recession will be enough to trigger a massive market move,” Edwards writes. A loss…