So, what's next?
Well, this is when things start to get ugly.
"I now think the correct thing to do – as I also said in April and June – is to prepare for a serious risk-off phase between August and November," he reiterated. "Over the August to November period I am looking for the S&P500 to trade off down from around 1400…by 20% to 25%...to trade at or below the lows of 2011."
He argues that the key drivers of this sell-off will be disappointment at next week's Federal Reserve Jackson Hole speech and realization that the ECB won't be be able to deliver on their promises.