The Royal Bank of Scotland (RBS) has urged investors to "sell everything" as it warned stock markets could fall 20% this year.
The bank issued an alert to investors saying "danger is lurking out there for every investor' and 'the downside is crystallising. Watch out. Sell (mostly) everything."
It added: "In a crowded hall, exit doors are small. Risks are high. This looks very much like 2008."
RBS suggested taking refuge in US and German government bonds, according to an article in This is Money.
Meanwhile oil prices fell to $30 a barrel for the first time since 2004 - but Standard Chartered said it could fall to as low as $10, not seen since 1998, the paper reported.
The warnings come after a roller-coaster start to the New Year for investors, which saw billions of pounds wiped off stocks in the UK and elsewhere stirred by turmoil in China.
The FTSE was volatile all week following its re-opening for 2016, while other global indices including the Dax and the Dow Jones also struggled.
The FTSE 100 finished up 1% at 5929.24 at the close on Tuesday, meaning it barely regained the ground lost during the day.
The index saw £85bn wiped off its value after tumbling 5.2% last week, during what was dubbed the worst start to a New Year on world markets.
