The slump in stocks has a silver lining – it shows investors have finally stopped fighting the Fed, BIS says

• Stock prices declined this month as markets started pricing in more aggressive Federal Reserve tightening.
• But that's not necessarily bad news for investors, according to the Bank of International Settlements.
• The sell-off makes it less likely there'll be "an abrupt financial repricing" later on, economist Claudio Borio said.

Investors shouldn't fret too much about the recent stock market decline – because it's a sign that markets have finally stopped fighting the Federal Reserve and other central banks, according to the Bank for International Settlements.

Claudio Borio, who heads up the financial institution's monetary and economic department, said in a media briefing accompanying BIS's latest quarterly review that this month's sell-off reduces the risk of a later crash.