Société Générale's bearish strategist Albert Edwards has outlined a number of scenarios which could cause the next "huge screw up" in financial markets as he warned he is most worried about the political fallout and how central banks potentially handle another crisis.
At an outlook briefing permabear Edwards pointed to a number of factors which could trigger this next crash including Bank of Japan (BoJ) policy, quantitative tightening (QT) or even the fear of recession itself. BoJ action One major surprise would be, he said, if the BoJ started to tighten, which it has already begun in some form by stopping the purchases of government bonds with a longer duration than ten years. This in turn, the strategist said, would lead the yen to unexpectedly strengthen, which would have a major impact on markets as the majority of investors are positioned fo...
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