The Uncertain Future of Banking in the Wake of Recent Turmoil.

Despite the recent banking sector turmoil, demand for equities remains high, with MSCI's world stock index up 7% so far this year. However, bad omens for world stocks are building, including tighter credit, a manufacturing slowdown, and a yield curve inversion, which often signals a recession. While tech stocks have dominated gains so far this year, they may not be immune to a recession. The defensive tech trade could work in a shallow recession, but in a deep downturn, money managers may dump tech too.