A Societe Generale analyst has predicted the US economy is about to be “swept away by a tidal wave of corporate default”.
Albert Edwards has not shied away from bearish comments in the past and has been dubbed an "uber bear". In February 2014, amid turmoil in emerging markets, he described the unravelling as "the final tweet of the canary in the coal mine".
And today he highlighted figures showing US corporate profits are suffering a "gut wrenching slump".
He said: "Whole economy profits never normally fall this deeply without a recession unfolding.
"And with the US corporate sector up to its eyes in debt, the one asset class to be avoided – even more so than the ridiculously overvalued equity market – is US corporate debt.
"The economy will surely be swept away by a tidal wave of corporate default."
Read more: Are markets underestimating the US economy?
Edwards also said of recent recovery in the S&P 500: "Ignore this noise.
"Recent whole economy profits data show that while the Fed plays its games, the economic cycle is withering and writhing from within.
"For historically, when whole economy profits fall this deeply, recession is virtually inevitable as business spending slumps.
"And if I had to pick one asset class to avoid it would be US corporate bonds, for which sky high default rates will shock investors."