(New York)
If financial shares are any indicator of the coming stock market environment, asset prices look set for a long rough patch. According to Morgan Stanley, financial shares are suffering as “The carefree days of rising rates and pristine credit quality could be coming to an end”. The bank’s research team continued, “We cannot ignore the growing risk of a bear credit market next year preceding a recession as well as the negative impact of weaker economic growth”.
FINSUM: Banks stocks are trading like the economy is headed towards a bear market, and we can’t help but think it may not be a bad call.
