Royal Bank of Scotland warns of ‘cataclysmic’ year with slumps in shares and oil and advises clients to shift to bondsInvestors face a “cataclysmic year” where stock markets could drop by up to 20% and oil could slump to $16 a barrel,economists at the Royal Bank of Scotland bear warned.
In a note to its clients the bank said: “Sell everything except tall quality bonds. This is approximately return of capital, not return on capital. In a crowded hall, and 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. Related: Oil slides towards $30 per barrel - business live Continue reading...
Source: theguardian.com