Société Générale's bearish strategist Albert Edwards has warned investors not to get tempted by "cheap" US equities, as the coronavirus plunges US indices into bear territory and President Donald Trump closes the country's borders.
Commenting on the bullish view that the US equity market is "cheap on an equity risk premium basis and has already discounted recession", the permabear analyst said: "What utter poppycock." In Edwards' opinion, equity markets are in a vulnerable position, as the "toxic fallout from the coronavirus pandemic" collides with "the grotesquely over-leveraged and vulnerable US corporate sector". "I've read enough about the coronavirus to have been persuaded that there are a variety of compelling and obvious reasons to suppose the US will suffer much worse from the virus than other Western in...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
