Take apocalyptic market calls with sackful of salt

London

US policy rates will be slashed to minus 5 per cent in the next recession, the S&P 500 will lose something like three-quarters of its value, and a global trade war will probably break out. What's an investor to do? Albert Edwards, a Societe Generale strategist and a perma-bear who recently forecast that scenario, poses the question but not necessarily the answer. Meanwhile Royal Bank of Scotland (RBS) analysts' pithy advice is: "Sell (mostly) everything."

A dreadful start to 2016 has made investors more receptive to such apocalyptic market forecasts. But as with the Greek oracles, the hard bit is figuring out how to act on the prophesies.