Barron’s: “Are Banks Signaling a Recession? They’re ‘the Most Important’ Stocks to Watch Now.”

Excerpt from Barron's quoting DataTrek's Nick Colas:

... "The shellacking that big bank stocks have taken as of late could be an ominous sign about what’s next for the economy. Or not. It will all depend on how much worse the private-credit problems get for major financials. The sector bears watching, but it may not be time to ring recession alarm bells just yet.

That’s the conclusion of Nicholas Colas, co-founder of DataTrek Research.

Colas wrote in a report Wednesday that “worries over private credit are expanding by the week.” He noted that concerns have gone from “the dodgy nature of some of the issuers” (think Tricolor and First Brands) to worries about heavily indebted private software companies that could be disrupted by artificial intelligence"...

Full article here on Barron's.