'Stress like 1987': Evercore's Julian Emanuel warns Silicon Valley Bank fallout could force new market low

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'Stress like 1987': Evercore's Julian Emanuel warns Silicon Valley Bank fallout could force new market low (via CNBCFastMoney)

"This decline is one of the most rapid on record only rivalled by 1987, when Greenspan introduced the 'Fed Put' affirming provision of 'unlimited' liquidity and cutting rates 75bp in and around the Crash of 1987," he wrote on Monday to clients.

Emanuel suggests more problems are lurking — especially if the Federal Reserve continues hiking interest rates. "If what we've seen is the first shot across the bow in terms of the effect of tightening, we are going to have a recession," he told CNBC's Melissa Lee and the traders."Part of the end game is we do want to see enough of a downturn to make stocks attractive," said Emanuel. "But we're still a ways from that."

Emanuel is sticking with his S&P 500 year-end target of 4,150, set in December. It reflects about an 8% gain"The next thing that we really need to be cognizant of is how credit, in general, trades," Emanuel said.

 

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“Suggests”

FastMoney What if you held stonks through the crash of ‘87. Was that the top?

FastMoney Literally 1987 lol

FastMoney Let’s remember jimcramer recommend SVB recently.

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