Author Topic: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS  (Read 1469 times)

0 Members and 1 Guest are viewing this topic.

Offline thaiga

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.

full article: money.cnn
Anyone who goes to a psychiatrist should have his head examined.
 

Offline Roger

  • posting on moderation row
  • Korat forum specialist
  • *
  • Posts: 1581
  • Thanked: 45 times
  • Karma: 0
Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
« Reply #1 on: January 13, 2016, 04:18:36 PM »
Thaiga I read this RBS report a few days ago in the DT.
Somewhat chilling when reading also of predictions that the oil price may fall to $10, commodity prices are dropping on most fronts, UK manufacturing is ailing, UK growth is a mirage supported mainly by excessive credit card spending and the danger of a collapse in UK asset and house prices. Articles today suggesting that George Osborne will have to raise money fast somewhere with the 'middle' class likely to be targeted. Interest rates may be ready to rise all around and the China and World economies are slowing down.
You can see our exchange rate Baht to £ worsening recently.
Cheerful stuff eh ?

 

Offline takeitor

Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
« Reply #2 on: January 13, 2016, 05:43:13 PM »
Aren't we all a cheerful bunch today?!  Call me a cynic, but any information that makes it as far as the newspapers is highly suspect and is probably driven by someone with a vested interest.  Analysts are rarely paid to make their assessments public unless they serve to further a cause.  Whilst there are many economies that are still floundering and things do not look so great, I do not think the the global economy is as doomed as some people like to make out.  I especially will not be taking advice from RBS, who had to be seriously bailed-out because of their lack of foresight in the past.

The current dip of the pound is, I believe, largely driven by the unexpected extension of very low interest rates and the uncertainty over the in/out of the EU (not quite sure which way this will go once that answer is certain!).  If China devalues their currency 20%, as was suggested in the article, it may well do us all the favour of forcing Thailand to devalue theirs also in order to remain competitive in Asia.

On the bright side, it at least looks like cheap petrol station visits are here to say for a while.

 

Offline Roger

  • posting on moderation row
  • Korat forum specialist
  • *
  • Posts: 1581
  • Thanked: 45 times
  • Karma: 0
Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
« Reply #3 on: January 14, 2016, 05:36:02 AM »
Good Morning Takeitor and of course, it's good to be sceptical and cynical. And RBS I agree ? But the comments of independent and respected economists cannot always be ignored out of hand.
It's not a matter of being cheerful or cheerless. It's a matter of facts unfortunately.
The issues I mentioned are unfortunately real and I am in the camp that fails to understand how over-indulging Nations such as the UK have managed to hold it all together since 2008 in fact.
Your point about a devaluation in China is interesting. Let's see. As far as the £ dropping recently that has been explained widely by statistics on manufacturing.
So while we are being cheerless - another World downturn will also cause major problems in the EU / Eurozone between Germany and the Southern Nations.
Interesting times.
 

Offline thaiga

Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
« Reply #4 on: January 14, 2016, 11:09:55 AM »
The issues I mentioned are unfortunately real and I am in the camp that fails to understand how over-indulging Nations such as the UK have managed to hold it all together since 2008 in fact.

Yes roger a fact that can't be ignored - ROB PETER TO PAY PAUL  :-[

Arh! R B S.    Real  Ball  Sh*t  ;)
Anyone who goes to a psychiatrist should have his head examined.
 

Online Taman Tun

Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
« Reply #5 on: January 14, 2016, 12:28:03 PM »
It was interesting to read some of the comments by the "experts".  One guy from a stockbroking firm was saying "don't panic, the stockmarket is a very good long term bet"  Of course he would say that. He does not want to loose all his customers.  Check this long term graph of the FTSE:- https://www.google.com.sa/search?site=&source=hp&q=ftse+&oq=ftse+&gs_l=hp.3..0l10.2424.7379.0.11375.5.5.0.0.0.0.368.1336.2-3j2.5.0....0...1c.1.64.hp..0.5.1335.ui4ySyxg9Jk. The market did indeed rise continuously from 1985 to 1998. But the FTSE today is at the same level it was at in April 1998. 

On a personal note I am concerned that if oil drops to $20 then the project I am working on will get canned.
We are masters of the unsaid words, but slaves of those we let slip out. Churchill
 

Offline thaiga

Re: Sell everything! petrol could become cheaper than bottled water
« Reply #6 on: January 15, 2016, 02:53:22 PM »
Oil price crash means petrol could become cheaper than bottled water

Brent crude prices fall below $30 for the first time since April 2004 and could make fuel cheaper than water

 Petrol will soon cost less than bottled water as the relentless decline in oil prices sends fuel down to 86p a litre, it has been claimed.

Brent crude fell to below $30 a barrel for the first time since 2004 on Wednesday evening - and has fallen by more 73pc since reaching highs of $115 last summer.

Motoring group RAC said pump prices now could fall back to levels last seen in the aftermath of the financial crisis in 2009, if the commodity plunges to as low as $10, a forecast made by Standard Chartered bank earlier this week.

More from the telegraph.co.uk
Anyone who goes to a psychiatrist should have his head examined.
 

 



Thailand
Statistics