And who could blame the unbelievers? After all, the longest expansionary cycle in history and trillions worth of monetary stimulus had failed to meaningfully move the needle on inflation.
But Albert Edwards, a global strategist and economist at Societe Generale, is not taking any comfort in Wall Street's views on inflation. He is instead reiterating his long-held thesis that aAt its worst, deflation is a self-reinforcing cycle: lower consumption during an economic slump prompts businesses to cut their investments, which then raises unemployment and limits spending all over again. And — you guessed it — it's not good news for stocks.
For one, long-forsaken value stocks are on pace for their best month relative to growth stocks in 12 years, according to data compiled by Ally Financial. That's one trade that could reverse at short notice.
What’s up will go down! This apple is too ripe and soon drop down to $7,000!
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