The Royal Bank of Scotland advisory from June 19 of this year:Pretty much
right on the money.
RBS issues global stock and credit crash alert
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.
On September 29, it was 1106 (the lowest value for that month). Today it's 909.
posted by Quiddity at 10/09/2008 12:48:00 PM
I read that report back in June and emailed a friend about it. I had forgotten it until today when I was cleaning out my email folders. I was surprised to read it again and see that it was so close to predicting what eventually happened.
