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Nir Kaissar

Forget Banks and Worry About High Stock Prices

The financial system shouldn’t be the biggest concern.

The next crisis won't be like the last one.

The next crisis won't be like the last one.

Photographer: Alex Kraus/Bloomberg 

It’s time for investors to stop fighting the last war. The next downturn most likely won’t be triggered by another meltdown of the financial system.

The Federal Reserve has concluded its stress test of big banks, a look into whether they have enough money set aside to withstand another 2008-type financial crisis. The Fed announced last week that all 35 banks examined are sufficiently capitalized. It disclosed the second and final round of results on Thursday afternoon, giving all but one bank a passing grade and the go-ahead to return money to shareholders.