Those hoping for a seasonal "Santa rally" in stock markets this year could be disappointed, according to Nomura strategist Bob Janjuah, who warned that the S&P 500 could slump to its October lows in the near term.
The widely-watched analyst, who is known for his bearish views, also said in a research note published Wednesday that he saw little upside for the equities in the coming year.
Janjuah said 2015 looked set to be even more turbulent than 2014 and warned that equities would make for an "unattractive" investment.
The key issues ahead are weakness in growth weakness and a fall in consumer prices, according to Janjuah, who referred to the "victory of deflation" and the "Japanification of the world."
"I continue to believe that four very strong deflationary factors are driving things – global indebtedness levels, demographics, technology and globalization," he said.
The S&P 500 was at 2,012.89 points on Thursday morning, and looked likely to rally after dovish words by Federal Reserve Chair Janet Yellen.
But Janjuah told CNBC on Thursday that any rise would just be an "interim bounce."
He argued that if the S&P has a weekly close below 1,905 points in the next few weeks, October's low of around 1,820 points would be the next target. This would see the yield on the U.S. 10-year Treasury falling to 1.75 percent, the dollar index easing back and generally weaker global equity markets, Janjuah added.
Janjuah's "stop-loss" – when investors should stop trading to limit potential losses - would be a weekly close above 2,020 points on the S&P.
"If I am stopped out...so be it – stop-loss rules are non-negotiable. But my caution and concerns remain," he said.