RBS Spoils the Fun

Modestly positive trading in international markets overnight quickly turned negative when Royal Bank of Scotland analysts put out a report advising clients to prepare for the worst market crash in 100 years.  The analysts warned that they expect inflation to paralyze economies worldwide.  In the US, they say the S&P 500 could fall by more than 300 as early as September. 

RBS has a series of commercials with the tag line "Make it Happen."  In this case let's hope they don't.

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Comments

[paimon]

The sky is falling! This is precisely the signal that contrarians have been waiting for to go all in.

[klemenv]

In last two months many bad things have happened. Really bad. And yet market has not crashed.

OK, nothing can help to Ninja-HELOCs-ARM guys.

But beyond that, in light of all that bad events, we have not obsereved sky falling.

Because of that, I am with contrarians.

[pdd]

when our friends in washington runout of bullets, the sky will fall.

[DaveW]

The RBS report may have some merit. So, as an investor interested in both growing AND protecting your portfolio a pause to consider is warranted. Remember, market psychology has been propped up by better than expected Q1 reports and the Fed intervention of BSC. But, with the high costs of goods and energy there is high risk of terrible Q2 and Q3 earnings. In the context of this risk, is it worth striving for an extra 10% gain at the chance of losing 20% of your portfolio? If yes, then best of luck to you.

[Whidbey]

Seems unstated.

[Whidbey]

This is not useful reporting. There may be a decline but it will make the rebound most rewarding.

On the other hand, the sight of all you fat westerners attempting to get out of the door before they being eaten is amusing. The west will soon know what third world life is like. Welcome to the human condition of the majority.

[messy]

Based on this article,,,,i think that i will run to GOLD & SILVER. That has always been a hedge against depressions.