The banking crisis continues, but the NASDAQ is holding down the fort. In the face of an on-going banking crisis, the investing community is speculating that the rise of the NASDAQ is mainly due to funds pursuing safe haven, re-allocating to mega cap tech. If it is just moving funds to mega cap tech, then how do we explain the semi-conductor ETF SMH’s outstanding performance
The bank run stopped inside the United States last week but a global banking crisis continued into this weekend. As of now, UBS agreed to take over the troubled rival Credit Suisse with the Swiss National Bank pledging a loan up to 100 billion Swiss francs to support the takeover. If Credit Suisse was let go like Lehman Brothers was during the 2008-2009
The Fed chairman Powell gave ultra hawkish statements during last week’s congressional testimony sessions two days in a row. The market was speculating that the Fed funds rate has to go up as high as 6%. That didn’t sit well with the CEO at Silicon Valley Bank who was warned of pending bond rating downgrade due to worsened financial conditions. SVB CEO was racing against time to secure funds while the Fed chairman talked
The 10-year treasury yield topped 4% last Thursday and the S&P 500 and NASDAQ made a bottom on the same day. The DOW bottomed on Wednesday, one day earlier. The pundits were yelling for the 10-year treasury to go to 6% based on the sticky inflation data. But the market has looked ahead already by topping out the 10-year treasury yield at 4% level. We sent out a
