'Just like in 1987.' Here's what could deliver a 'devastating blow' to stocks, says SocGen strategist Albert Edwards.

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Société Générale's sharp-tongued strategist Albert Edwards is warning of a 1987-style event for stock markets if the bond market does not cool off.

Those surging bond yields — like being trapped in a car that you know is about to crash, and helpless to stop it.

And what could break the bough for stocks? “Just like in 1987, any hint of recession now would surely be a devastating blow to equities,” said the strategist. “Never in my career have I witnessed such uncertainty about where we are in the economic cycle. Is that long promised recession still lurking around the corner or are we at the start of a new economic cycle? Many investors are apparently increasingly convinced it’s the latter,” said Edwards.

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