Albert Edwards: Get Ready For The Bond Bloodbath

SocGen’s Albert Edwards is preparing for a bond market bloodbath in the coming weeks as the Federal Reserve’s rate hike cycle leads to an aggressive selloff in short as well as long term rates.

This isn’t a sudden change of heart by Edwards, he still expects a deflationary “ice age” in the long term and to clarify, he writes in his Global Strategy Weekly report: “Make no mistake. Unlike most in the markets, I remain a secular bond bull and do not think this 35-year long bull bond market is over. I believe the US Fed has created another massive credit bubble that will, when it bursts, lay the global economy very low indeed.” While the ice age is...