Societe Generale analyst Albert Edwards repeats call for S&P to drop to 450

The bears seem to be coming out of the woodwork in droves. The latest being Albert Edwards of Societe Generale who famously called for the S&P to drop below March 2009 lows back in May 2012 (see video). This week Mr. Edwards repeated his call for the S&P to drop to 450. In a report titled We still forecast 450 S&P, sub-1% US 10 year yields, and gold above $10,000 released this week “There are some ever-present truths in this business. Economists usually forecast a return to trend growth and will never forecast a recession. Equity strategists tend to forecast the market will rise 10% each year and will never forecast bear markets.” Well, apparently Mr. Edwards strongly believes in being the contrarian. Last year his call was completely wrong, will he get it right this time around? There is mounting evidence to suggest that his call may again be wrong this year but then every contrarian does have his day. Time will tell if Mr. Edwards' call proves to be correct or if he will be forced to repeat this call again next year this time around.

When will the current market bubble in stocks and bonds end?

David Stockman, former budget director in the Ronald Reagan administration wrote an article in the New York Times on Easter Sunday entitled "Sundown in America" where he has given a brief history of the various market bubbles since the 1970s when the big Wall Street banks essentially turned the US economy into a giant casino driving booms and busts. He ends the article on a very ominous note reproduced here "there are trillions of dollars of assets, from Shanghai skyscrapers to Fortune 1000 stocks to the latest housing market “recovery,” artificially propped up by the Fed’s interest-rate repression. The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse. If this sounds like advice to get out of the markets and hide out in cash, it is."
This view has been challenged by the pollyannish talking heads at Bloomberg citing assorted University professors challenging Stockman's view (see video). I personally am inclined to agree with Stockman about the bubble - it will be rather curious to see when this on will burst.