Albert Edwards of Societe Generale did ultramedvezhy forecast the dynamics of the index S & P500. Experts believe that the index will fall to 75% from the current levels - based on AMarkets.
Edwards predicts that the US economy will plunge into recession provoked by the global deflation and weak performance of American industry. Expert says - monetary easing with its three rounds has not made a significant economic recovery, however, it is most restated asset prices. Fedu managed to keep the price at the top for a long time - it was a mistake. Changes in monetary policy in the direction of tightening is required to break the system of higher share prices - they will fall.
Central banks also provoked their behavior blowing up the scale of the debt bubble. Especially in emerging markets. Therefore, the latter are forced to devalue their currencies.
Deflationary spiral unwinds at the global level, sooner or later, the resulting recession in America. The expert believes that the recession will lead to a drop in stock prices. The last will be traded with a multiplier of 7 to revenue, not more. Edwards expects the S & P will fall to 550 points - nearly 75% from the current levels (around 2100). S & P and is already entered in the correct zone, asks for more than 10%.