Nobody likes to admit that they were wrong, especially when the mistake is directly tied to one's job description. With the stock markets surging to all-time highs, Wall Street's most famous bears have found themselves struggling to explain to their clients why they were told to stay out of stocks. A sampling thereof…
Albert Edwards: Stocks rallied like this before the last crash The bearish strategist at Societe Generale has been telling his clients to keep as low an exposure to stocks as possible. Fortunately for his clients, SocGen won't allow him to recommend anything less than 50 percent exposure to stocks. In a note published yesterday, Edwards reiterated his uber-bearishness towards stocks, arguing that this is looking more and more like 2007 before the markets crashed.
"As the Dow surges to all time highs it feels eerily similar to the prior mid-2007 peak," he wrote. "Exactly the same jitters abound of a bond bear market and true to form Ben Bernanke is making the same complacent comments."
Bob Janjuah: I told you stocks would rise Nomura's Janjuah scared his followers out of the stock market with his repeated warnings that the S&P 500 would crash to 800. He even suggested that the Dow and gold could converge at 7,000. In recent months, he has been patting himself on the back for suggesting that stocks would climb before tumbling down.
Marc Faber: This just means the crash will be worse The author of the "Gloom Boom & Doom Report" has been sounding a lot like Janjuah. While he has not explicitly forecasted that stocks would go up, he has warned that the more stocks rise, the uglier the crash will be.
And rather than admitting error or expressing frustration, he has become increasingly excited about the prospect of a crash. "For the first time in four years," Faber told CNBC, "since the lows in March 2009, I love this market. Because the higher it goes the more likely we will have a nice crash, a big time crash."