Economists from the Royal Bank of Scotland have issued a chilling statement, urging investors to "sell everything" as the global stock market heads towards a possibly catastrophic year ahead, according to The Wall Street Journal.
The grim advice was published in a note to the bank's clients, which was dated Jan. 8. In the note, the RBS warned that the current trends in the global economy are very similar to its state in 2008, before the financial crisis.
"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 said in the note, according to The Guardian.
The stark warning comes as the global economy reels against a continuously weakening oil industry, with crude oil prices falling to its lowest levels in more than a decade. However, the RBS, together with another prominent bank, Standard Chartered, believe that the industry is not done with its decline.
Morgan Stanley, for one, states that oil might very well fall to $20 a barrel this year. On the other hand, Standard Chartered states that the fall might be more drastic, reaching a level not seen since 1999 at $10 a barrel, according to The Daily Mail.
With the global economy in its current state, a full-blown global economic crisis might be looming in the near future.
