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SVB Bank Crisis Could Sink Any Bank, Big or Small… JPMorgan Warns Stocks Are in ‘Calm Before the Storm’… Banking Crisis Is Not Over

Flight to Money Funds Is Adding to the Strains on Small Banks Silicon Valley Bank’s collapse has caused savers to seek out alternatives, but the shift poses risks to the financial system and the wider economy.

via YAHOO:

(Bloomberg) — A risk-on mood fueling this year’s equities rally is likely to falter, with headwinds from bank turbulence, an oil shock and slowing growth poised to send stocks back toward their 2022 lows, according to JPMorgan strategist Marko Kolanovic.

“The Fed indicated no intention to cut interest rates this year, yet risk assets are exhibiting an unprecedented rally, with European stocks trading near all-time highs and US stocks recovering recent losses,” Kolanovic wrote in a note to clients Monday. “We expect a reversal in risk sentiment and the market retesting last year’s low over the coming months.”

In his view, the inflows into stocks over the past few weeks “make little sense” and were largely driven by systematic investors, a short squeeze and a decline in the Cboe Volatility Index, or VIX.

I’m going to go on a limb that she did not read the latest H.8, which showed $126B in deposits taken out – a 25% increase since SVB failure.


Federal reserve’s weekly report on all commercial banks assets and liabilities

You can find it here:

The question is not when there will be a credit crunch, but how large and for how long.

Here’s everything the Fed has done wrong in handling the economy and why its reputation is in tatters, according to Mohamed El-Erian

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