Albert Edwards: The Fed Put is 3,000 on the S&P 500

To achieve its mission of reducing inflation, the Fed will keep raising rates, according to Albert Edwards, and won’t stop before the S&P 500 hits 3,000.

That is a 24.8% decline from its close yesterday of 3,991, on top of the 16.65% decline already this year.

Edwards is the global strategist for Société Générale and is based in London. He spoke virtually at John Mauldin’s Strategic Investment Conference on May 9.

The end of the ice age cometh

Edwards is known for his “ice age” theory, which he introduced in 1996. It was based on his observations of the end of the 1980s Japanese asset bubble.

The main risk to Japan was thought to be outright deflation, and Edwards believed it would affect the U.S. and Europe too. He deduced that Japan’s problem was “secular stagnation,” before that concept was popularized by Larry Summers and others.