Could The Banking Crisis Be Good For Stocks?
The turmoil in US regional banks will weigh on economic growth. Arguably, it would be better for the broader stock market if growth slowed because banks became more conservative in their lending than if it slowed because the Fed had to raise rates to over 6%. In both cases, economic growth would decelerate but at least in the former scenario, the discount rate applied to earnings would not be as high.
Interested in reading this report?
To access the full BCA Research report, request a complimentary copy
BCA Research | Global Investment Strategy
As BCA Research’s flagship publication, the Global Investment Strategy service provides macro-based investment recommendations across all asset classes, geographies, and time horizons.
Stay Connected with BCA
Get our latest events and research insights delivered to your inbox.