How bad? Strategist says up to 25% drop ahead

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The global sell-off in stocks this week may just be the beginning warned Nomura's widely followed strategist Bob Janjuah.

"Policy since the GFC [global financial crisis] has resulted in a deeply unstable outcome in the global economy and across markets," Janjuah wrote in a note to clients.

The market watcher asserts that "debt-driven asset bubble implosions (such as the GFC) cannot merely be 'fixed' with even more debt and another round of central bank-driven asset bubbles."

Already this week, China's Shanghai composite plunged nearly 12 percent while other major indexes like the S&P 500 and Germany's DAX are down more than 4 percent and 7 percent, respectively.

With a gloomy outlook on the horizon, here are some of the major predictions from Janjuah.

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