European Banks are Burning 🔥

Raising Interest Rates into a Bank Crisis is No Bueno

Deutsche Bank credit default swaps up 17% today. That would’ve been a smart trade. Rotation into risk of, high quality assets…US treasuries (refresher, yields go up, bond values go done. Yields go done, bond values go up).

10yr Treasury yields down 12%ish since beginning of March 2023.

What house is the safest place in the neighborhood?

Yesterday morning I got a call from a financial advisor who manages well over $300 million in assets. The question was, what do I do? Where do I go? This market has become very confusing for many financial advisors as well as individual investors. The standard risk managed policy of ‘the market has gone up over the last hundred years or will just wait it out’ maybe a hard one to justify in the near future. After I got off the phone with them they were calm and had a game plan.

This is what I told them.