Stocks Drop May Turn Into ‘Rout’ as Economy Peaks, SocGen Says

(Bloomberg) -- The two-week retreat in global equities may turn into a “rout” after a measure of so-called leading indicators fell, signaling the economic recovery may be peaking, according to Societe Generale SA’s Albert Edwards. An Economic Cycle Research Institute gauge of the U.S. economic outlook slipped to 27.2 in the week ended Oct. 16 from 27.8 the previous week, the first drop since March, according to Bloomberg data. The decline is “tentative evidence” that the economy’s rebound is near a peak, Edwards, a global strategist at Societe Generale in London, wrote in a research report today.

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