Seeking Alpha

SocGen's Al Edwards doesn't disappoint his fans, believing the S&P is headed to 450 and gold...

SocGen's Al Edwards doesn't disappoint his fans, believing the S&P is headed to 450 and gold to $10K. Most interesting is this chart on bond yields vs. forecasts. Forecasts in the deeper past essentially matched actual yields, yet for the last decade estimates have consistently called for "normalization," i.e. higher rates, but it's never happened. "Consensus has still not accepted that we remain locked in an Ice Age environment that will see U.S. (and U.K. and German) yields (TLT, TBT) converge to Japanese sub-1%."
Comments (1)
  • Now if you actually believed in this forecast then buying SPX Put LEAPS (Dec 2015) would be a cheap way to play this for a potentially huge gain.
    25 Apr 2013, 10:38 AM Reply Like
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