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Investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 a barrel, economists at the Royal Bank of Scotland have warned.
In a note to its clients the bank said: “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.” It said the current situation was reminiscent of 2008, when the collapse of the Lehman Brothers investment bank led to the global financial crisis. This time China could be the crisis point.
originally posted by: pl3bscheese
If it goes down to $11 I'm buying.
The bank's advice? "Sell everything".
However, the note has been met with plenty of cynicism.
"I think it's probably the worst kind of recommendation you could make," responded Robert Pavlik from Boston Private Wealth.
originally posted by: smirkley
My guts tell me RBS was overextended into Chinese currency and is trying to avoid insolvency.