SocGen's Edwards: Black Monday could happen again tomorrow

‘Extreme expense’ of equity valuations

Mike Sheen
clock • 2 min read

Société Générale's bearish analyst Albert Edwards believes the events of the Black Monday crash in 1987 "could happen again tomorrow" as a result of inflated equity market valuations.

Edwards said he often hears clients saying they are "not interested in being told equity valuations are expensive", but noted that the "extreme expense of US equities" was a "major contributing factor" to the 1987 crash. Rogoff: Rising interest rates could cause economy to 'unravel' He said: "In my view the record 25% ‘Black Monday' 19 October decline was due to a horrendously expensive equity market suddenly confronted with the fear of recession. Equity valuations matter. "[19]87 saw a buoyant equity market rising briskly through most of the year as the oil price recovered from th...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Partner Insight: Playing Defence with Dividends

Partner Insight: Playing Defence with Dividends

Today’s equity markets are characterised by bouts of volatility, spurred by geopolitical tensions and macroeconomic uncertainties, mainly due to the start-stop nature of the US-initiated global trade war. This has investors seeking strategies that offer...

Reineke Davidsz and Najib Nakad @ VLK Investment Management
clock 10 July 2025 • 3 min read
Stock pickers urge caution over rapid return to US equities

Stock pickers urge caution over rapid return to US equities

Quilter and Fidelity

Linus Uhlig
clock 01 July 2025 • 1 min read
Deep Dive: US equities may not have peaked but do require greater selectivity

Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

Linus Uhlig
clock 13 June 2025 • 4 min read
Trustpilot