Thursday, July 1, 2010

RBS Warns: Global Stocks, Commodities to Crash

Global stocks and commodities, outside of gold, are poised to crash amid continued woes for banks, according to RBS strategists.

Central banks will have to keep easing, which means Treasuries and gold will rise, while equities and commodities plummet, they wrote in a research note obtained by CNBC.

"Surely risks associated with us being wrong are low, i.e. (Treasury) rates stay where they are," wrote chief RBS credit strategist Andrew Roberts.

"But risks associated with us being right are 10 percent returns in 10-year Treasuries and at the same time that equities/commodities will collapse far beyond what even some equity bears anticipate." (more)

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