Federal Reserve's change of tune
Despite this powerful catalyst, strategists including Societe Generale's Albert Edwards have identified worrying traits of the rally that portend danger ahead. For those who would rather dismiss Edwards' ideas as the ramblings of another perma-bear, he reminded readers of a few prescient calls he made over a decade ago. He said central banks would be forced to lower interest rates to zero in dealing with the next recession, and that they would have to buy bonds to keep borrowing costs low.
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