RBS Warns Investors of 'Cataclysm': 'Sell Everything'

The Royal Bank of Scotland reportedly has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.

The bank’s credit team said markets are flashing stress alerts akin to the turbulent months before the Lehman crisis in 2008, the UK Telegraph explains.

“Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” the bank, also known as RBS, said in a client note.

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