Stock markets face a 'bloodbath' SocGen warns

Bearish Société Générale strategist Albert Edwards has warned equities face a "bloodbath" and predicts government bond yields will fall even further.

Edwards says there is too much hope among investors, especially excessive US valuations, and predicted it would come to an end in the coming months as economic data increasingly pointed to a double-dip recession, The Telegraph reports. "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 says. While many ‘safe haven' government bonds have alrady fallen to record lows, Edwards ex...