“Sell everything and run for your lives...” That's how Societe Generale strategist Albert Edwards describes the current situation in stocks right now. And as hyperbolic as it sounds, we're actually starting to agree with him...by Jimmy Mengel
I totally disagree with the above statement in term of TIMING. SPX and DOW NDX should head a lot higher before the historic crash in 2016-2017.
Yet, like everyone, he succumbs to his market bias and panic (Ebola fear, Japan/Europe recession, poor earnings reports, war etc) that surrounds all of the analysts, traders and investors recently.
We are long term bullish for all major world markets, including those of the Aussie, U.S., Britain, Canada, Germany, France and Japan. Of course, we can’t deny the fact that occasionally, we will see 5-10% correction after hitting new peaks.
Also, short term oscillates so much that we must trade in and out without holding the positions for more than 2 weeks.
However, we all must be flexible (adjust accordingly) with our forecasts as the Cycle inversion can happen in term of the turning points (high become low or vice versa)
The following charts clearly indicate the ‘bullishness’ of the markets.