Why would . . . oh, never mind.
For a paltry120$ billion? Not much of a shakedown.
Thiel is not friend of the Democrats. Just heads up baseball?
It’s a bailout for sure.
Idk about the nationalization of the banks rhetoric but I sense a shakeout followed by liquidity. The feds don’t want a repeat of 2008 but will take another 2009.
The San Francisco feds completely missed it. I wait and wonder why exactly,
and this, already looking ahead.
When Will Interest Rates Go Down?
First, we expect the Fed to pause its rate hikes by summer 2023. Then starting around the end of 2023, we expect the Fed to begin cutting the federal-funds rate.
The Fed will pivot to monetary easing as inflation falls back to its 2% target and the need to shore up economic growth becomes a top concern.
1) Interest-rate forecast. We project a year-end 2023 federal-funds rate of 4.75%, falling to 2% by the end of 2024. Further out, our 2026 and long-run projection for the fed-funds rate and 10-year Treasury yield are 1.75% and 2.75%, respectively. We do, however, expect interest rates to dip below these levels in 2025 and 2026 as monetary policy leans accommodative.
If the bank gets nationalised or bailed out their stock can drop much further. Lot of risk there. My folks lost 80% at least even when the two main banks recovered in Ireland because the shares became so diluted.
What you gonna do with bank stocks? It can be a short time play, but tell me how a bank will make money in next decade?
low growth of economy, treasury yield way bellow inflation, together with decoupling from China
Energy companies will do well, companies important for military complex like Rolls Royce, Leonardo in Europe. Coppers miners can well do too. Economies of Mexico and Brazila will do better. Grupo México is very good investment for next decade. Health care stocks will do well too. When it comes to tech, small value cap. I doubt b8g tech comapnies will do well, except maybe Google.
Dont touch the credit suisse shares…its still a turkey on the way down.
My best performing stock is NVDA. AMD is recovering nicely too.
Whoops, I sold some covered calls a while ago. I guess that boat has sailed.
Speaking of options.
My guy says blood is definitely in the water now. Fun time.
Sold IEI and IEF for a quick 4-5%
What does your guy say, buy or sell? which stocks?
As I mentioned earlier when they bail out the banks it usually destroys their stocks cos they get diluted to hell and they have to trade under strict regimes for years…if they survive.
I bought more HFRO and KYN yesterday. And some NVG the other day on his rec. and EQT and ENB.
I thought this article was speaking some common sense. Why buy stocks when they could have more pain (my reversion to mean hypothesis) and cash just gives you a guaranteed rate.
Anybody know if many more banks are in a bad way out there ?
Bitcoin is FINALLY showing some promise (not confirmed) of being seen as a safe have asset, after failing miserably over the last year or so.
Ethereum unstaking upgrade is coming up, one of the pivotal moments ever for the crypto in dustryas nobody really knows which way it will go.
Im an optimist and I see more people staking ethereum now that it is possible to unstake.
Small/regional banks in the US and Rurope must be hemorrhaging money on the quiet now:
Sara Mauskopf’s day-to-day concerns — her customers, her employees, her own three children — don’t typically involve the Federal Deposit Insurance Corporation. She is the chief executive of Winnie, a start-up that helps families find child care and helps child care providers find customers, serving over 250,000 day cares and millions of families. Ms. Mauskopf, 38, has raised over $15 million for Winnie since its founding in 2016 and employs 29 people. All of her company’s money was in Silicon Valley Bank.
There’s some talk of people keeping money with SVB. I received an email from them saying SVB is the safest bank, we will honor your venture debt if you come back. I have to digest that. I don’t ever want to hold all my money in one institution ever again.
SNV has dropped. Regional bank I made a bundle on last years or Two. Dunno how solid they are now.
Because stocks will be (or already are) priced according to their risk and expected return over that guaranteed rate. Anything obvious enough to be in a businessinsider article is already priced in. Where they go from here depends on things that either haven’t happened or that most of us don’t know.
It’s been a shit year but I’m still 100% stocks, and I’m confident that twenty years from now that will seem like a reasonable position.
Oh I forgot to mention my guy said crypto will pop as well as liquidity returns to the market.