Bank advises: “Sell everything!”

The stock market experts at the Royal Bank of Scotland advise their clients to sell all securities, but to hold on to bonds.

The year 2023 could well go down in history as a catastrophic year, if you believe the investment experts at the Royal Bank of Scotland (RBS). They see similarly devastating signs of a global crash, as was last the case in 2008. That’s why bank customers should immediately sell all the securities and investment products they hold, if possible. Only high quality bonds should remain in the portfolio.

Global deflation

This is, of course, a hammer statement from a bank that earns a not insignificant proportion of its profits from handling its customers’ stock market transactions. How does RBS come to this call?

Global deflation cannot be ruled out in 2008, according to the bank’s experts. The world’s major stock exchanges could fall by up to 20 percent and the oil price could reach a new low of $16 per barrel. The world economy will collapse and the next credit bubble will burst with a sizzle. This is what RBS experts believe will happen in 2023.

The stress symptoms, which show up at the markets at present, would very strongly remind of the turbulences briefly the bankruptcy of the Lehman Bros. Bank recall, this is how the gloomy predictions are justified. Especially the worldwide record debt can only be taken note of with strong concern. The repayment of the borrowed capital is more than uncertain, and there has been no talk of returns for a long time now.

Developments in China also point toward the abyss. Interventions in the stock market, as happened recently, testify to the feverish actionism of the Chinese. But this will not lead to a fundamental calming of the markets. On the contrary, other markets will not remain idle, triggering an avalanche effect.

Equities uncertain

Against the backdrop of these developments, shares and loans are no longer safe in the eyes of RBS bankers. The prices on the stock exchanges will drop considerably and loans will burst one after the other. Therefore, all investments should be disposed of as quickly as possible. Only high quality bonds should be left in your portfolio.

Conclusion

Unfortunately, RBS investment advisors are not the only ones making gloomy predictions for 2023. Also other “Stock exchange gurus” want to have made out at present a similar situation as 2008. They also expect falling share prices and new lows in the price of oil. Here even oil prices of only 10 dollars per barrel are in the discussion.

Should these predictions really come true, which unfortunately one always knows for sure only afterwards, it can only be said today: Save yourself who can! Because there are not enough lifeboats.

But since no one has the omniscient crystal ball at their disposal with which to look into the future, everything could turn out quite differently in the 2023 stock market year. Some experts therefore consider the sell recommendation of RBS to be hysterical and counterproductive. But if gloomy predictions do come true, you’d better not be among the last to dump your stocks.