Here's why the US avoiding a recession would actually be a 'treacherous' scenario for the stock market

• The US avoiding a recession could actually be horrible for stocks, TS Lombard said.
• That's because the Fed would likely keep interest rates high in a "no landing" scenario, weighing on equities.
• Fed officials aggressively hiked interest rates last year to control inflation, a move that caused the S&P 500 to lose 20%.

The US avoiding a recession would actually be "treacherous" for stocks, TS Lombard warned this week.

According to the research firm, investors could actually see more losses if the economy manages a "no landing" scenario, meaning the US avoids a slowdown and a recession and instead continues to remain strong. 

That's because the Federal Reserve would likely keep interest rates high, whereas central bankers have traditionally cut interest rates by at least 200 basis points when faced with a recession, strategists said.