The bank stocks have been one of the top-performing sectors lately, holding up even as tech stocks have been beaten down. But at the end of the month, that could all change. That’s because of a rule called the supplementary leverage ratio, or SLR. It allowed banks to use Treasuries as assets during the worst of the pandemic last year.
If the SLR exemption isn’t continued, banks will have to hold more capital as reserves against their treasury positions and deposits kept with the Fed. That could lead to a scramble for cash, which could make the recent market weakness extend well beyond the tech space. Fed Chairman Jerome Powell had a chance to address this on Thursday’s interview, but failed to do so.
Will the financials be the next sector to have wild volatility – or even a bear market?
Hit reply and let us know your thoughts.
Now here’s the rest of the news:
Gold and Bitcoin Can Co-Exist as Inflation Hedges
Both are used for protection against inflation, and neither is likely to displace the other. Gold is more liquid and has a larger role in the monetary system. But the real difference between the two is the types of savers who choose them… [Read Here]
March 08, 2020
Today is DarrenDaily Recap Sunday. A collection of the weeks videos from Darren Hardy. Enjoy!
I’ll leave you with another picture from Gander, NFLD.
March 08, 2019