Soc Gen strategist Albert Edwards, has warned of a looming recession in the US

Livewire News

Livewire

Soc Gen strategist Albert Edwards, has warned of a looming recession in the US. The key precursor to this recession is slowing productivity growth. Edwards has noticed a worrying trend in a cycle that began in June 2009. Unit labor costs are now running well ahead of output price inflation meaning a margin and profits downturn for US businesses is now about to unfold. Edwards believes that a full-blown profits and investment downturn is most likely to be triggered by Asian and emerging market devaluations. This situation would release surplus capacity onto the West and crushing pricing power even further. In addition, Edwards argues, recent market phenomena have skewed investors perspectives of what is fair value for equities. He raises the question, do you need monetary tightening to burst a credit bubble? (VIEW LINK)


2 topics

Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.