Royal Bank of Scotland has recommended its clients to divest all the assets, except for high-quality assets. The Bank expects that 2016 will become the period of “cataclysms” due to low oil prices and China’s economic downturn.

Royal Bank of Scotland sent to its clients the analytical report, in which it recommended to divest assets. The Bank warned that in 2016 the financial market expects “cataclysms”, UBR reports.

“I suppose that world is expected to face the year of cataclysms, this is evidenced by the feedback from investors,” – the Head of Credit Department of RBS Andrew Roberts, – Sell all, except for the most high-quality assets.”

The Bank assessed current risks for investors as very high. “The overcrowded room has always very narrow doors”, - the notice says. RBS emphasized that depositors should concern not about making profit, but about preserving capital.

According to Roberts, European and American markets can fall by 10-20% in the current year. “London is also vulnerable for negative shock. All people, which are purchasers of oil and gas assets and think that their dividends are safe, will understand that it’s not so.” (the quote from The Guardian).

Among negative factors, which Royal Bank of Scotland specifies, there is a drop in oil prices, instable situation on Chinese market, slowing world trade, debt growth, weak corporate loans and deflation. Its influence has already led to the collapse of exchanges at the beginning of the year. “It seems to us that investors should be afraid”, - said Roberts.

At the end of December 2015 Royal Bank of Scotland predicted the drop in oil prices to $16 per barrel. “Why is someone still putting a stake on the increase of oil prices? For me this is also surprising as how reluctantly oil prices were decreasing in 2015. But my reply to this question – open long positions on the exchange”, said Roberts in his outlook.