Bank Chaos Tests Traders’ Nerves and Rewards Those Doing Nothing

  • Stocks holding up well after the collapse of several lenders
  • Sticking to bonds amid extreme Treasury turmoil reaps profits

The New York Stock Exchange in New York, on March 20. 

Photographer: Michael Nagle/Bloomberg
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The plot twists in markets have lately been riveting. The urge to react has been intense. Doing so has mostly been a mistake.

It’s still early, and things can get fluid when financial stress is afoot. But amid warnings of a banking crisis, a credit-fomented recession, pivoting central banks and stagflation, the best strategy so far — particularly in stocks — has been to sit still.