Global Stock and Credit Crash Alert

[Helena]

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RBS issues global stock and credit crash alert


By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 6:55am BST 18/06/2008




The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century.



< snip >



entire article at link

RBS issues global stock and credit crash alert - Telegraph



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[CybrMike]

Well, if the Royal Bank of Scotland says so, guess it must be true!

 

[Marquette]

Rich, you'd better wait another year

 

[CitricAcid]

Taking my checking out of Citizen's...

 

[RDamien]

... Doh

 

[brewer12345]

I hear the store is having a sale on Reynolds' tinfoil...

 

[calmloki]

Which is all very fun 'n stuff, but all this whistling in the dark we're doing is really nothing more than that, correct? Isn't it that we all hope there isn't "a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks"? Have no idea how one is supposed to brace for such an eventuality - figure my Y2K MREs are still good, and haven't used up the candles and lamp oil - but it sure doesn't bother me having them. Having a bit 'o cash put aside feels right too...
Lessee.
proper asset allocation?
active, mobile, and hostile?
guns, gold, grain and grist mill?

 

[Marquette]

figure my Y2K MREs are still good

That means you were assuming they were ever good?

 

[calmloki]

maybe good wasn't the best choice of words... can be eaten? better than grass porridge or eating bark?

 

[FinanceDude]

Switchgrass sounds good, you can eat it or put it in your car.........

 

[Khan]

maybe good wasn't the best choice of words... can be eaten? better than grass porridge or eating bark?

MREs

Meals Rejected by Ethiopians.

 

[brewer12345]

MREs

Meals Rejected by Ethiopians.

Meals that Refuse to Exit

 

[Helena]

Which is all very fun 'n stuff, but all this whistling in the dark we're doing is really nothing more than that, correct? Isn't it that we all hope there isn't "a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks"?

As the article says: " Cash is the key safe haven. "


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[CuppaJoe]

MREs

Meals Rejected by Ethiopians.

True story. There is an Ethiopian (longtime immigrant with perfect English) at the coffee shop who wants to feed me! Start a healthy-food catering business. She's already fed me some bing cherries. Most of us at the coffee shop are starting to avoid her. That's the word on my street.

 

[Helena]

I hear the store is having a sale on Reynolds' tinfoil...

The British media doesn't put smiley faces on the financial news.

Give me smiley faces or give me tinfoil !

Is that it ?


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[BoutDone]

As the article says: " Cash is the key safe haven. "


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There are many inverse ETFs that you can use to profit in a down market. Cash is not the only option. If there is an interest I can provide a list of inverse ETFs, some of which are double inverse.

 

[BunsGettingFirm]

There are many inverse ETFs that you can use to profit in a down market. Cash is not the only option. If there is an interest I can provide a list of inverse ETFs, some of which are double inverse.

There is. Please provide list.

 

[2B]

I was immediately surprised that all of my normal sarcastic comments had already been taken but then I realized the people on this forum are just as jaded as I am. Here's my one contribution -- Analysts make a "name" for themselves by making a totally outrageous prediction that happens to come true. It doesn't matter if the 92 before and the 37 after were totally wrong. They will always be introduced as the one who said "........" and were right.

 

[Helena]

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This article was mentioned this afternoon by FOX and CNN news.

Do you think there is enough tinfoil to go around...
I don't want to horde it all



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[Gone4Good]

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This article was mentioned this afternoon by FOX and CNN news.

Do you think there is enough tinfoil to go around...
I don't want to horde it all

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Bad things happen all the time. In financial markets, "one in 100 year catastrophes" actually happen every 5-10 years. I fully expect to see another 50% decline in stocks in my investing lifetime . . . maybe more then one. But because we can't predict with any degree of certainty when the next one will hit, rushing to adjust the portfolio every time someone says "Y2K", "Avian Flu", "Terrorists", "Credit Crisis", or whatever happens to be the fear de jour, just ends up being counter productive.

 

[Helena]

Bad things happen all the time. In financial markets, "one in 100 year catastrophes" actually happen every 5-10 years. I fully expect to see another 50% decline in stocks in my investing lifetime . . . maybe more then one. But because we can't predict with any degree of certainty when the next one will hit, rushing to adjust the portfolio every time someone says "Y2K", "Avian Flu", "Terrorists", "Credit Crisis", or whatever happens to be the fear de jour, just ends up being counter productive.

I don't need to adjust my portfolio. I am already in cash...
and have been for awhile.


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[boont]

The Markets

"I hear the store is having a sale on Reynolds' tinfoil..."
Brewer12345

"The market can remain irrational longer than you can remain solvent."

John Maynard Keynes

 

[DblDoc]

I don't need to adjust my portfolio. I am already in cash...
and have been for awhile.


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I think RBS wants you to put it in their bank. This is the same bank that was very hard hit by the credit market debacle and just recently raised billions in capital to keep functioning Bloomberg.com: U.K. & Ireland. Me thinks they have a vested interest in a flight to cash...

DD

 

[brewer12345]

tags: nonsense, fearmongering, bull ca-ca

 

[brewer12345]

"I hear the store is having a sale on Reynolds' tinfoil..."
Brewer12345

"The market can remain irrational longer than you can remain solvent."

John Maynard Keynes

"Well, shave my nuts and serve me a milkshake!"