CMT Association affiliate member James Mitchell was featured in Barron’s on Thursday theorizing about the current condition of bank stocks, which he noted have traditionally remained “surprisingly stable” in periods of economic drawdown.

“Mitchell argues that a near-term recession will be even easier on banks, and ‘in this context, the average decline from 52-week highs of 32% in large cap banks & brokerage stocks is in line with the average 31% peak-to-trough declines seen in the recessions in the early ’80s and in 2001,'” writes reporter Ben Walsh.

Mitchell added that, “with this stock correction matching prior recessionary moves, turning negative on the group now would be like ‘closing the stable door after the horse has bolted.’”

Read the full article here: Are Bank Stocks Predicting the Next Recession?