I see that the Royal Bank of Scotland has been doom-mongering:
... RBS advice, which warned that investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 a barrel.
In a note to its clients the bank said: “Sell everything except high-quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.” It said the current situation was reminiscent of 2008, when the collapse of the Lehman Brothers investment bank led to the global financial crisis. This time China could be the crisis point, RBS said.A bit late in the day, I would have thought, as the FTSE-100 has fallen from over 7000 last April to substantially below 6000 today. And, anyway, if you liquidate all of your investments, what are you going to do with the cash? Stick it in a bank account where it will earn less than peanuts in interest? Even buying additional property is subject to increased attention from the taxman.
But you can still find shares at relatively cheap prices offering reasonable dividend prospects, especially in the utilities, telecomms and retail sectors. Probably best avoid oil companies and miners for now.