SocGen's Edwards: Investors are 'stoned on free money'

Could 'easily prove fatal'

Tom Eckett
clock • 1 min read

Société Générale's bearish strategist Albert Edwards has warned the investment community is "hooked on monetary opioids" provided by central bankers over the past decade.

In his latest investment note, the permabear noted that every major central bank has played a part in injecting another "dose of euphoria" into its "market patch". The Federal Reserve, he said, was the most "visible and dominant dealer" of all, by deciding to put its foot on the interest rate brake in January just a month after signalling plans to raise rates twice in 2019. Markets are now pricing in a rate cut. However, it is not just the Fed. As Edwards highlighted the European Central Bank, the Bank of Japan and the People's Bank of China all loosened policy in January. SocGen's...

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 Markets

Trustpilot