Albert Edwards: S&P 500 Could Fall By 75%

It’s nearly 20 years since the first formation of Albert Edwards' Ice Age thesis and to celebrate this special anniversary, the author of Societe Geneale’s Global Strategy Weekly research note, used last week’s update to assess how close markets are to the next Ice Age.

Albert Edwards - It's the Ice Age?

Albert Edwards' Ice Age theory is not just about economics and the drift towards deflation; it was also a description of how financial markets would react to the prevailing economic environment:

“In the Ice Age, government bonds re-rate in absolute and relative terms against equities which de-rate in absolute terms. Equity investors endure a secular valuation bear market lasting many economic cycles, punctuated by cyclical rallies that beguile investors into...