Bitcoin is a Bubble: Albert Edwards

Albert Edwards, Societe Generale’s famous strategist thinks that there is no arguments bitcoin is a bubble. Edwards says that there is a more important bubble-the US stocks. He pointed that S&P 500 Index is more overbought since 1995. Besides, professional advisers are more bullish on the market than at any time.

The overvaluation could, of course, continue – “the market can remain expensive and irrational far longer than most investors can stay solvent, or indeed longer than most investment managers can retain their jobs in the face of underperformance”.

But there is another fact, that investors are justifying their enthusiasm with the hope that Donald Trump’s tax-cut package will help to increase corporate profits. However, Edwards thinks that inderlying profits recover looks weak, because profits have barely rebounded on an economic basis.

To say in other terms the apparent recovery mainly caused by firms, rather than those in US, that generate most of their sales. This means that in an overvalued, overbullish and overbought market profits growth is slowing down.

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