REUTERS
Retail traders who are speculating on cheap companies risk getting wiped out by another stock-market crash, says Albert Edwards, a global strategist at Societe Generale.
He says investors wrongly believe the Federal Reserve is all-powerful, and doubts that its intervention will avert another downturn of as much as 30%.
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Albert Edwards is not a fan of the retail mania sweeping through the stock market.
The Societe Generale global strategist was a
vocal skeptic of the market's run-up to the 2000 dot-com bust. He is speaking out again as he watches traders who seem hell-bent on buying after a record-breaking crash and despite ever-present economic risks.
These traders have been pulled in partly by dollar-cheap
speculative companies that recently declared bankruptcy. Last year's fee war among brokerage firms could not have come at a better time for these traders who now enjoy multiple options for free transacting.
