We have just had the worst decade’s performance for equity investors on record<\/strong>. Relative to government bonds, equities have been an even bigger disaster. Surely after such a terrible decade for equity investors things can only get better?<\/span><\/span><\/p>\n On a ten year view, equities may indeed prove to be a good investment<\/strong>. On a 1-2 year view, however, we still see much pain to come. After what we have been though so far, where the bulls’ optimism has been crushed in 2001\/2 and in 2007\/8 surely there must be a heavy weight of self-doubt yoked onto the shoulders of the bulls – but apparently not!<\/span><\/span><\/p>\n The lesson from Japan is that while de-leveraging plays itself out, the global economy will remain extremely vulnerable<\/strong>. The Great Moderation is dead. It was built on a super-cycle of private sector debt. We know from Japan, we now return to what was before, i.e. highly volatile and unpredictable cycles. Recession will quickly follow recovery.<\/span><\/span><\/p>\n And he concludes with this terrifying slide:<\/span><\/span><\/p>\n Join the conversation about this story »<\/a><\/p>\n See Also:<\/b><\/p>\n The market is rallying, but so what. SocGen’s uber-bearish analyst Albert Edwards says you should be terrified if you’re a bull, and that if you’re not terrified, you’re probably deluding yourself. FT: Alphaville has his latest report: We have just had the worst decade’s performance for equity investors on record. Relative to government bonds, equities […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-57567","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/57567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=57567"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/57567\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=57567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=57567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=57567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/span><\/span><\/p>\n
<\/span><\/span><\/p>\nRead the whole thing at FT Alphaville >><\/a><\/strong>
<\/span><\/span><\/h2>\n\n
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