RBS Predicts Cataclysmic Year for Markets

“Sell everything.”

That harrowing advice is from The Royal Bank of Scotland, which has warned of a “cataclysmic year” ahead for markets and advised clients to head for the exit. Do not wait. Do not pass go.

“Sell everything except high quality bonds,” warned Andrew Roberts in a note this week.
He said the bank’s red flags for 2016 — falling oil, volatility in China, shrinking world trade, rising debt, weak corporate loans and deflation — had all been seen in just the first week of trading.

“We think investors should be afraid,” he said.

Morgan Stanley warned this week that oil could touch $20 a barrel. RBS says if it falls below $30, then $16 is on the horizon.

The world is in a global recession, Roberts wrote. This terrible cocktail means investors should now be thinking about getting a “return of capital, not return on capital.”

RBS compares the market mood with that of 2008 before the collapse of Lehman Brothers and the start of the global financial crisis.

via CNN

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