RBC Capital Markets and Recession

current valuations: Don’t miss: Apple could offer investors shelter in a recessionary storm, according to Market Watch. Applying a stress test to their coverage universe, using worst-case, price-to-earnings valuations seen during the 2008-to-2009 recession, RBC analysts said they believe the shares of most companies could still fall another 50% or more from current levels. Based on current valuations, the prices of most stocks don’t appear to have factored in a recession scenario, hence the downside should we see a recession could be rather severe, RBC Capital Markets’ global equity team wrote in a research note to clients. The concern for RBC analysts stems from the recently volatility in the stock market, caused by macro weakness, softness in China and commodity market challenges. Fact Set Caption outside of wrapper for normal article images Nearly half of S&P 500 companies have now reported fourth-quarter results through Tuesday morning, and earnings-per-share is headed for a 5.8% decline on the year, according to Fact Set, compared with an estimated 5.7% decline as of Friday. On Monday, Deutsche Bank strategist David Bianco said the second-half of 2015 was clearly a profit recession for S&P 500 companies, and suggested it probably won’t be until the second half of this year that healthy growth returns. (news.financializer.com). As reported in the news.