Albert Edwards: "One Massive Bubble Waiting to Burst in 2024"

This sets the table for a long commodities, short bonds kind of year

For me, there is one massive bubble waiting to burst in 2024.

-Albert Edwards

Housekeeping: Something good that is easy to digest

Albert Edwards is the second macro person advising bonds are not a buy for 2024 even while the rest of the street is in love with them again.

“For those who fade Wall Street consensus (which is always wrong), this is a slam dunk: buy commodities, sell bonds” ZeroHedge on Hartnett

In combination with Hartnett’s recent observations (above), Edwards also sets the table for a long commodities, short bonds kind of 2024 for our own trading bias. But that opinion is not yet set in stone.

Enjoy

Contents:

1. 2023 Macro’s Three Biggest Surprises

2. 2024 Stocks: Too Many Eggs in One Basket Still

3. 2024 Bonds: Bull Market Head Fake

4. Edwards’s Full Analysis: And the big surprise of 2024 will be…

1- 2023 Macro’s Three Biggest Surprises

• No US Recession as many predicted

• No China Recovery as many hoped

• ChatGPT/ AI rescued Tech-stocks from rising yields and poor earnings

Which he feels sets the table for next year by ending 2023 with Tech Valuations hovering at their richest ever with only the Y2K Tech bubble excepted. While this can continue Albert does not bet on it.

Therefore, he believes a large correction is incoming and possibly a recession on its heels. He is more confident in his Bond market call.

Here is his bottom line on Stocks and Bonds