Predictions???
Out of context: Reply #50
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- utopian1
Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
"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.
- Investor panic would make a self-fulfilling prophecy.ETM