The mid-summer rally is over and stocks will begin a downward leg before bottoming in October, as the world economy is in what looks like a Great Depression, Robin Griffiths, a technical strategist at Cazenove Capital, told CNBC Monday.

"Equities are for losers and bond markets for winners. Equities are simply for people who like losing money," Griffiths said.

"A double-dip is inevitable and imminent, as Keynesian stimulus measures have never worked anywhere. We are in the equivalent of a Great Depression following 3 years of credit crisis," he added.

But there will be some winners or relative outperformers in the stock markets, according to Griffiths.

"Firms like Caterpillar will do well, America has some great companies and CAT is one of them, able to export anywhere in the world as it has good products people want to buy," he said.

"I also like the German market. Exports are doing well and will be further boosted by the performance of the euro over the last 12 months," Griffiths said.

German exports rose by a higher than expected 3.8 percent in June following strong demand from across the world for German goods, according to data released Monday.

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