Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | Banyan Nation, I can imagine you’re tired of hearing the words “Silicon,” “Valley” and “bank” in the same sentence. I know I am! Unless you happen to live in the San Francisco Bay Area, you had probably never heard of SVB until this past week. And then you find out — it’s the most critically important piece of the financial system! But then, we’ve been here before. Back in 2008, none of us had ever heard the term “monoline bond insurer.” That is, until their potential failure threatened to blow up the bond market. And no one knew what “quantitative easing” was until the Federal Reserve flooded the market with trillions of dollars. It seems that the financial system has unlimited new and creative ways to blow itself up, each with its own original vocabulary. Dominating the headlines now is the “non-bailout” bailout of First Republic Bank (FRB). The Federal Reserve and U.S. Treasury politely asked (or perhaps cajoled and threatened … we’ll never know) 11 major banks to deposit $30 billion into FRB. When the news broke on Thursday, the stock market rallied hard. It seemed plausible that this mini crisis might be abating. But then stocks opened on Friday deep in the red. Is it over? Is the banking sector stabilized? It’s not looking that way. Even if we don’t see banks fall like dominoes, there are going to be aftershocks. Banks sitting on losses, like SVB, are less likely to make loans. This means monetary conditions might get even tighter, particularly for tech companies. And recessions are often self-fulfilling prophecies. When companies expect a slowdown ahead, they often cut back spending … which effectively causes the slowdown they feared. We’ll see. But in the meantime, it looks like more volatility ahead. That’s not necessarily a bad thing, though. We like volatility, as it sets us up for trading opportunities. It also gives us good entry points for long-term positions. And on that note, let’s see how the team has been navigating the past week. | | | Famed investor Charles Mizrahi went live with this urgent briefing telling early investors how to use the current bear market as a gift. Buying what he calls “M-Class Stocks” have historically made investors MORE money when bought during bear markets. Some of these top-performing stocks have averaged 24,000% returns. Click here now for the details on how to start investing in M-Class Stocks today. | | | Weekly Recap - Silicon Valley Bank Crumbles Like It’s 2008
Silicon Valley Bank’s collapse seemed to come out of nowhere. But Adam O’Dell’s Stock Power Rating system had been telegraphing for months that trouble was brewing in the shares. What else does the rating system say, and what does it mean for popular tech stocks? - Is Silicon Valley Bank Heralding the Next Financial Crisis?
You know that SVB failed. It’s been dominating the headlines for a week. But how did it happen? What exactly went wrong? And what does this mean for our game plan for the rest of the year? - Oil and Natural Gas Won’t Stay Down After SVB Fallout
The string of bank failures is taking its toll on the markets, including crude oil and energy in general. But this trend is bigger than Silicon Valley, and the volatility is setting us up for an epic buying opportunity in energy. - SVB Is Having a “Bear Stearns” Moment, Not a Lehman
You remember the day Lehman Brothers failed in 2008. We all do. It felt like the world was ending. But the string of major bank failures started six months earlier, when Bear Steans gave up the ghost. SVB’s failure looks more like the beginning than the end. - The Fed Is Screwed, But You’re Not
SVB wasn’t the only bank to start tanking this week. The Fed had to step in, but it only has so many moves it can play to try and stabilize the economy. Adam O’Dell’s solution is simple: have a “Permanent Portfolio” to protect your investments. Be sure to tune in for The Banyan Edge Podcast on Monday. Mike Carr will be joining me, and believe me, he has a lot to say. Mike has been consistently warning about the dangers to buy-and-hold investing in this environment, and he’ll be discussing one of his very favorite trading strategies to actually use the market volatility to our advantage. And finally, I’ve been thinking a lot about gold this past week. The bank failures gave us a reminder that having a little money outside of the system isn’t such a bad idea. I’m nibbling on gold bullion, and if you’re interested in adding a little physical gold to your portfolio, give our friends at the Hard Asset Alliance a call. They’re offering a special deal for Banyan Edge readers. Just click here to learn more! Until then, Charles Sizemore Chief Editor, The Banyan Edge P.S. — Are you enjoying The Banyan Edge? We’d love to get your take on our research, and we love answering questions. So, if you have any questions, insights, or just want to leave us a note, please send an email to banyanedge@banyanhill.com. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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