In a new report, Societe Generale analyst Albert Edwards explains why the bumpy start to 2016 for global equity markets could be the beginning of a catastrophic collapse in equity valuations to levels below the ones seen during the worst of the Financial Crisis.
According to Edwards, the devaluation of the renminbi will lead to a prolonged period of global deflation and recession. In addition, the global asset bubble that the U.S. Federal Reserve inflated with its aggressive QE programs is now bursting.
Related Link: George Soros Says We’re In A Crisis Like 2008
“A key part of my Ice Age thesis is that the US equity market remains in a valuation bear market that did not fully play itself out in March 2009, when the S&P touched the 666 level, and we will see new lows,” Edwards predicts.
He expects…
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