Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Thursday, June 29.
State of Play
The Federal Reserve said the country’s 23 biggest banks passed its stress test of a “severe recession,” clearing the way for stock buybacks. Weirdly, Fed Chair Jerome Powell doesn’t appear to have gotten the message that all is clear in the US banking sector. At a conference in Spain overnight, Powell said he was “very reluctant” to call the banking crisis over, thus not just directly contradicting the stress test results but also comments he made less than two months ago about the US banking sector being “sound and resilient.” On the bright side, this lends itself to a new meme:
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