Sell shares now, warns guru
Economics guru Albert Edwards, a strategist at Société Générale, is warning of a “bloodbath” in share markets in the months to come. October is a traditional month for a stock market crash and it’s beginning to look ominous for 2010.
“Equity investors are in for a rude shock. The global economy is sliding back into recession and they are still not even aware that these events will trigger another leg down in valuations, the third major bear market since the equity valuation bubble burst,” he said.
“So far the equity market has shrugged off much of the weaker data that abounds, and has not joined the bond market in a perceptive move. The equity market will though crumble like the house of cards it is, when the nationwide [US] manufacturing ISM slides below 50 into recession territory in coming months.”
We are about to witness a “valuation nadir last seen in 1982″.
A massive flight to safety is on the cards.
