Citi analysts warn of global economic catastrophe

Analysts at Citi are suggesting the global economy could be caught in a “death spiral,” says a CNBC.com report.

Read: The story behind China’s weakening currency

“Stronger U.S. dollar, weaker oil/commodity prices, weaker world trade/petrodollar liquidity, weaker EM (and global growth)… and repeat. Ad infinitum, this would lead to Oilmageddon, a ‘significant and synchronized’ global recession and a proper modern-day equity bear market,” Citi strategists say in a report cited by CNBC.

Adds the report: “The death spiral is in nobody’s interest. Rational behavior, most likely, will prevail.”

Read more here.

Also read:

Commodities could strengthen in 2016, says expert

Chinese manufacturing index weakens

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.