Markets rallied yesterday after 11 big banks came to the rescue of Silicon Valley Bank and Credit Suisse. The two banks received over $80 Billion Dollars between the two of them. The markets welcomed the news with open arms and wallets. About every sector ended higher. Nvidia (NVDA) was up 5% at the close.
Futures are slightly down but it's hard to imagine anything changing about the commitment the 11 banks made yesterday. Crypto has also been on a tear and Bitcoin (BTC) is sitting at $26k. The markets want to rally but are concerned that a crisis is still lurking underneath. If the Fed pivots from raising rates we will explode to the upside.
Biden is pulling a page out of the Trump playbook and is asking TikTok to divest from the Chinese parent company ByteDance and be acquired by an American company or face a potential ban in the US. This is a real national security issue and the data and content of 100 million daily users would be in much better hands with Alphabet (GOOGL) or Meta (META).
Happy Investing!
The Punkrock Capitalist
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