Société Générale's bearish strategist Albert Edwards has outlined a number of scenarios which could cause the next "huge screw up" in financial markets as he warned he is most worried about the political fallout and how central banks potentially handle another crisis.
At an outlook briefing permabear Edwards pointed to a number of factors which could trigger this next crash including Bank of Japan (BoJ) policy, quantitative tightening (QT) or even the fear of recession itself. BoJ action One major surprise would be, he said, if the BoJ started to tighten, which it has already begun in some form by stopping the purchases of government bonds with a longer duration than ten years. This in turn, the strategist said, would lead the yen to unexpectedly strengthen, which would have a major impact on markets as the majority of investors are positioned fo...
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