Good morning.
The past week has proven volatile amid the two largest bank failures since 2008. However, swift action over the weekend by the FDIC, and moves by central bankers in Europe to shore up Credit Suisse (CS) are stemming the fear. So too is the potential for regional banks like First Republic Bank (FRC) to be acquired.
One can’t help but notice that there’s a clear group of winners here – the banks that have been dubbed “too big to fail.” That could bode well for these companies in the coming quarters, as new customer deposits could lead to higher returns without those banks seeing higher risks.
Traders may want to look at owning those banks, with speculative traders looking at the regional players trading at the steepest discount to their book value as a way to potentially own shares of one of the mega-banks at a lower cost.
Now here’s the rest of the news:
The Scariest Part Of The SVB Collapse (Going Unreported)
Let me just divert your attention for a moment from the collapse of SVB Financial and what it might and might not mean for the financial system or the startup bubble or whatever, to another troubling aspect of SVB Financial that shows… [Read Here]
March 17, 2022
Good morning.
The Federal Reserve has finally raised interest rates for the first time since 2018. The rate hike has been known to investors for months, thanks to the Fed’s carefully crafted communications. And the stock market has responded with a decline to price in those rate hikes this year.
In the meantime, geopolitical events have added increased uncertainty. And gas prices briefly soared 50 percent higher in just a few weeks.
With inflation still running high, a small interest rate hike here is likely too little, too late to help the economy. If anything, a move to raise rates a year ago would have left more wiggle from for central bankers to ease some of the uncertainty going on right now. We’ll see if the current shocks are enough to tip the economy into a recession.
Traders should look for a relief rally in stocks as the current fears fade, but be mindful of how the economy is growing on an inflation-adjusted basis.
Now here’s the rest of the news:
U.N. Warns Over Meltdown of Global Food System
The head of the United Nations warned Monday that Russia’s assault on Ukraine is pushing the global food system to the brink of disaster as wheat prices skyrocket and key supply chains are thrown into chaos, threatening a global hunger crisis. [Read Here]
Chinese Markets Signal A Repeat Of 2008
A selloff in Chinese stocks deepened on Tuesday, with concerns about the nation’s ties to Russia and regulatory pressure sending a key index to the lowest level since 2008. The Hang Seng China Enterprises Index, after the biggest plunge since… [Read Here]
March 17, 2021
Good morning.
The latest Bank of America Fund manager Survey has had some big shifts in recent months. The biggest risks, according to the pros, are higher than expected inflation and a bond market tantrum much like the one seen last month. Rapidly dropping from the list? Covid, and in particular the vaccine rollout.
In the meantime, a record number of survey takers are bullish on the economy’s prospects this year. The consensus is also moving to a V-shaped recovery as lower-wage workers in sectors like airlines are able to get back to full-time work. This euphoric view, coming at a time of high market valuations, has historically pointed towards at least some kind of correction to change views.
Where do you see the biggest risks to investors today?
Hit reply and share your thoughts.
Now here’s the rest of the news:
Here’s How Much the COVID-19 Stimulus Will Cost You –Kevin A. Hassett & Matthew Jensen, National Review
Stimulus added $5.3 trillion to the debt that you will have to pay back someday. Think of COVID-19 relief as a car payment, of course without any delivery of a car… [Read Here]
185 Pensions Got A $86 Billion Piece of the Stimulus Pie
Again, we’re forced to ask, just what is the latest stimulus supposed to be stimulating? Failing pension plans – in fact, more on pension bailouts than on vaccine distribution and testing. Who writes the check? American taxpayers. Here’s what you can do… [Read Here]
Gold $1,728.86 (+1.6%)
Silver $26.02 (+2.6%)
Platinum $1,211.90 (+6.5%)
Palladium $2,406.88 (+1.3%)
March 17, 2020
Morning! “Okay, which one of you worried well is the most worried?”
Throughout the week, the Fed Fired Most of its Bullets in Attempt to Curb Market Panic.
The markets are tumbling, so the Fed has launched initiatives to spur liquidity.
But now that their arsenal is bare, is there anything left to save the markets?
“The coronavirus isn’t the cause of this collapse,” argues Brandon Smith, “but it is the perfect cover for something larger.”
“People want to invest in something, and when something is not certain, they want to be secure,” says Rocky Simonetti … and … Jim Cramer reminds us all, “Still time to buy gold!“
March 17, 2019
Sunday mornin’ — finally the snow around our house is actually diminishing … yes melting.
We like it hot … hot … hot!
Got to go out exploring this afternoon. Need batteries for my trackpad, keyboard & mice! Must also take a few moments to reconnect with family… 😉
