Albert Edwards: Gold will soar to $10,000

Not one to shy away from making brave predictions, Société Générale's Albert Edwards sets out his views on the future for gold and American stocks.

Most analysts "don't like to stand out from the crowd", says Albert Edwards of Socit Gnrale especially with a negative forecast. But Edwards has always been famously bearish. The S&P 500, now around 1,600, will slide to 450, he says; US ten-year bond yields will fall below 1%; and gold will shoot to $10,000 an ounce.

We are heading for another recession, says Edwards. The latest round of central-bank money printing won't stop the economy weakening. The recession will prompt the Fed to move to "QE infinity (squared)". All this will create a "Japanese-style loss of confidence in policymakers", panicking markets, and lay the foundation for "rapid inflation". So, once bond yields have hit Japanese-style lows, they will head "much, much higher".

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