You have been warned.
Things are about to really hit the fan, 2008-style, according to the Scots. So let us not mince words.
RBS economists have urged investors to “sell everything except high quality bonds,” warning of a “fairly cataclysmic year ahead….”
In a grim set of predictions, Andrew Roberts, head of European economics, rates & CEEMEA research said that the world has “far too much debt to be able to grow well.”
He also warned that advances in technology and automation are set towipe out up to half of all jobs in the developed world.
The note says equities could fall 10% to 20%.
Oh yea, and that’s not all, and they’re not alone. Because while the following sounds like a good thing, it isn’t, because cheap gas doesn’t offset economic collapse.
Morgan Stanley joined Goldman on Monday in the $20 club. Unlike Goldman, which based its forecast on growing inventories, Morgan Stanley said that oil could fall to $20 under pressure from a strengthening dollar.
But those calls were conservative compared to RBS, which suggested last week that oil could hit $16 a barrel, and Standard Chartered , which said yesterday that “prices could fall as low as $10 before most of the money managers in the market conceded that matters had gone too far.”