Societe Generale strategist and unfailing bear Albert Edwards has returned from his summer holiday just in time to see the S&P 500 (INDEXSP:.INX) top 2000, but the focus of his latest brief isn’t so much that the stock market is overvalued (he’s covered that ground plenty of times) as it is an explanation for how the end of QE is already pulling the carpet out from under high stock prices.
“QE has been an essential driver for the equity market, providing the fuel for the heavy corporate bond issuance being used for share buybacks,” he writes. “Companies themselves have been the only substantive buyers of equity, but the most recent data suggests that this party is over and as...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
