“Sell everything except high quality bonds”. This is going to be a “cataclysmic year”.
This was the advice that UK investment bank RBS screamed to its clients in January.
While we could just stop at noting that RBS is no doubt the deserved winner of the gong for the worst call of 2016, the advice is interesting for three other reasons. Firstly, that it got such extensive media coverage in Australia by the likes of the ABC and Fairfax highlights that “bad news” sells. The fact that it was so wrong demonstrates again that you can’t afford to pay too much attention to headline grabbing analysts, investment banks, media commentators or other so called gurus. But also, it reminds us that 2016 has been a remarkable year for the stock market, which is finishing so different to the way it started, almost incomprehensibly different.