RBS issues global stock alert – The S&P 500 to slump by more than 300 points by September

Today RBS issued a global credit and stock alert as inflation paralyses the major central banks. In the interview for UK daily telegraph Bob Janjuah the bank’s credit strategist said “ A very nasty period is soon be upon us”

I haven’t seen the RBS report but judging from the interview I suspect that the main argument for issuing the alert is stagflation story.
The RBS prediction is going along my own expectations. However main argument for nasty drop of the global indexes is the interplay between investors ( a negative feedback loop). In coming days I plan to publish here several articles explaining how the negative feedback loop is now present in stock markets and how it is likely to trigger selloff within several next week s