AEP back on the doomsday train
The Telegraph's Ambrose Evans-Pritchard and a panicky market go together like pizza and beer.
He got his hands on a client note from RBS bond desk that warns of sharp falls in global equities in a "cataclysmic year" for stocks.
"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 in a client note.
Andrew Roberts, the bank's credit chief, said that global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings. This is particularly ominous given that global debt ratios have reached record highs.
"China has set off a major correction and it is going to snowball. Equities and credit have become very dangerous, and we have hardly even begun to retrace the 'Goldlocks love-in' of the last two years," he said.
Roberts expect US and European stocks to fall 10-20%.
He details other calls for trouble as well from Jefferies, UBS and Larry Summers.
