The Casino Is Looking For A Reason To Crash---And May Have Found It In The Bond Pits

Global investors are looking for an "excuse" to sell their equity portfolios, and they may finally have a concrete reason to do so, the notoriously bearish strategist Albert Edwards said in his most recent note to clients. Writing on Wednesday, the Societe Generale strategist argued this week's move above 3% in the US 10-year yield— for the first time since 2014 — could be the catalyst required for a big sell-off. Stocks in the US sold off more than 2% Tuesday after the breach.

"Equities are looking for an excuse to sell off and the current rally may abruptly end for any number of reasons," he wrote. "Perhaps the greatest near-term threat to the stability of the equity markets is seen as the recent surge in bond yields."


David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.