RBS says sell everything.

The Telegraph recently wrote that everything is going down including oil so people should sell everything except AAA bonds.

Apparently they are under the impression that oil will be $16/bbl soon which is essentially free.  Maybe it will get there some day but the wave count says that a big bounce is going to begin soon with a target price for oil of $60/bbl.

All these analysts ever do is to wait faaarrrr too long before sounding the alarm and then when they finally do sound the alarm it is pretty much already over.  This is because they are affected by herding instinct.  But wait, sez you.  Those analysts are making conclusions based on reams of data and so they must have a clue.  But I say that they do the same thing over time and time again!  How can anyone be wrong so many times in their interpretation of the data without their interpretation skills being called into question?

While I do agree that there is significant downside potential to stocks, I have to say that to bundle resource stocks in with the general stock market right now is insane. RBS thinks oil will go to $16 while general stocks pull back 20%.  So after a fall from $150 to $31, RBS say oil will cut in half yet again while beloved main stream shares pull back only 20%.

I think oil will hit $60 before it hits $25.