Breadth in the financials is 85% today, based off whims of ideas from Bill Ackman’s twitter feed, essentially.
Consider Bill the ambassador from Wall Street to DC. Whatever he wants — he will get.
Our gov’t’s failure to provide a temporary guarantee on all deposits is causing an unnecessary banking crisis which could have a profoundly negative effect on the economy. Confidence is destroyed quickly and can take years and sometimes decades to be restored.
Three dominoes… https://t.co/n9rsHhndbG
— Bill Ackman (@BillAckman) March 16, 2023
The whim is TOTAL BAILOUT. Overseas people are optimistic that CS will be backstopped/bailed out. However, UBS just told Swiss regulators to fuck off and they weren’t at all interested in merging with the toxic wasteland that is CS.
Be smart. Don’t go all in short like a moron into an 85% breadth day on the cusp of more bailouts. Oh you think you’re gonna win? How has that worked out for you so far, Mr. Bear? They shut the whole economy down in 2020 and marked ripped higher because of it.
I am 100% long quality stocks selected by the Stocklabs quant. My sole margined positions are TMV and FAZ. I am now 14% weighted FAZ and will add more — perhaps tomorrow. Having a hedge makes me feeeeeel safe in these existential times of grave uncertainty.
I am +1.7% with 45 mins to go, cooly listening to Stan Getz in my library — surrounded by leather-bound books and Chesterfield couches.
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It sounds fine to say that they’ll just bail the banks out, but up until this week we haven’t been selling off because of a banking crisis. We’ve been selling off because of stagflation. If they fix the banking crisis that developed this week, don’t we just revert to the crisis we were already in?