The US recovery story is a fraud: SocGen bear

CNBC ^ | 26 February 2015 | Matt Clinch

[Lorianne]

Societe Generale's notoriously bearish strategist, Albert Edwards, has poured scorn on the belief that the U.S. economy is recovering and predicts "violent" reactions in asset markets during the second half of 2015.

"The downturn in U.S. profits is accelerating and it is not just an energy or U.S. dollar phenomenon – a broad swathe of U.S. economic data has disappointed in February," he said in a research note published Thursday.

U.S. indexes have continued to hit all-time highs this year and the Nasdaq is also looking to break through a level last seen at the peak of the tech bubble in 2000.

However, Edwards said that, rather than concentrating on these corporate earnings or dismal economic data points, market participants were too focused on the "pillow talk" about decent payroll data from the U.S. Federal Reserve.

[RetiredTexasVet]

“The downturn in U.S. profits is accelerating and it is not just an energy or U.S. dollar phenomenon – a broad swathe of U.S. economic data has disappointed in February,” ....

You can only do so much in stock buy backs (corporate directors, managers, etc. beneficiaries at grossly inflated prices) to increase EPS without increasing sales revenues (in excess of “real” inflation) before the house of cards starts to collapse. Throw in some spiraling healthcare costs, EPA and IRS counter productive rules and regulations, and every other government busybody and you have a recipe for disaster.

[Seizethecarp]

Thanks for posting!

[Seizethecarp]

I agree totally! The current “record” stock levels are based on fraudulently cheap money printed by central banks debasing their currencies against each other as fast as they can. When this thing blows it will be a humdinger!