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Economic Scenarios

All articles tagged with #economic scenarios

finance2 years ago

"Mike Wilson's Stock-Market Playbook: Navigating Economic Scenarios and Top Stocks for 2024"

Morgan Stanley strategist Mike Wilson believes that the recent rally in the stock market is reflective of a "soft landing" outcome, with interest rates and financial conditions driving the increase in stock prices. He outlines playbooks for three economic scenarios, including reacceleration in nominal growth and a potential hard landing. U.S. stock futures were lower, impacted by Boeing's misfortune, while key asset performances showed mixed results. Additionally, various corporate developments and upcoming economic news were highlighted, including the start of fourth-quarter earnings season and the New York Fed's survey on inflation expectations.

via MarketWatch|
#economic-scenarios#federal-reserve#finance
finance2 years ago

Fed's 2023 Stress Test: Banks Survive, Credit Crunch Risk Looms

The Federal Reserve's latest bank stress tests reveal that the eight largest banks in the US are protected from the conditions that caused the collapse of Silicon Valley Bank. A broader test involving 23 top US banks showed that they would keep lending even in a severe recession, although they would face significant losses. The stress tests evaluate the sufficiency of banks' capital reserves to ensure they can continue providing credit during periods of financial stress. The Fed's vice chair for supervision has proposed modifications to the stress tests, including a "reverse stress test" to identify potential failure points. The Fed also conducted an exploratory market shock test on the largest banks, simulating conditions similar to SVB's collapse.

via Quartz|
#bank-stress-tests#capital-reserves#economic-scenarios