SocGen's Edwards: Trade war recession fears a 'red herring'

Fed actions 'murder' bull market

Société Générale bearish strategist Albert Edwards has said growing fears of a global recession caused by a US-China trade war may be a "red herring" as the Federal Reserve is more likely to "murder" the bull market.

In his latest research note, the notoriously bearish investor also dismissed the idea that yield curve inversion is a "necessary" or "sufficient" indicator of a recession. Edwards said: "The assumption that the increasing drumbeat of a trade war is the likely trigger to causing a US (and global) recession may be a red herring - albeit a rather pungent one that cannot be completely ignored." At the time of writing, US 2-year treasuries are yielding 1.86%, while 10-years are yielding 2.1%. Edwards said that while "some commentators still cling to the belief that because the 10y-2y ha...