SPLX News and Press, ETRACS Monthly Reset 2xLeveraged S&P 500 Total Return ETN From 03/17/23

2023-03-17 03:58:25 ET Summary We were seeing warning signs in Financials long before the current regional banking crisis. On February 22nd, we even posted a public warning about this sector flashing warning signals. When you add up the prior 3-month (inflationary) readings and an...

2023-03-17 03:40:00 ET Summary The market gyrations are not rooted in a banking crisis, but in financial cracks from rapid rate hikes. We expect central banks to take actions to shore up the financial system – but to keep hiking rates. We see opportunities in short-term...

2023-03-17 03:05:00 ET Summary The Fed and U.S. Treasury have made to decision to back-stop depositors at U.S. banks – a liability that could potentially hit $2 trillion. However, the scale of the problem this time, compared to 2008, is multiples larger. Aside from what...

2023-03-17 02:10:29 ET Summary Credit Suisse is having difficulty. What else is new? Over-tightening could become more inflationary than not tightening enough. Updates on China and auto suppliers. Recency bias, or availability bias, is a cognitive error identifie...

2023-03-16 23:56:00 ET Summary This week’s chart of the week shows how the standard credit cycle operates and the way the borrowing booms and busts across time. Credit risk isn’t just creeping up on us. It punched everyone in the face this week. And it is likely to g...

2023-03-16 23:29:00 ET Summary The recent disarray in the banking system appears to have caused fundamental changes to the near-term course of the economy. The expected recession is now more likely and will probably occur sooner. As the economy slows sooner, inflation may move...

2023-03-16 21:41:00 ET Summary Real Personal Income and Retail Sales have been holding at recent highs despite voluminous calls for recession and claims that consumers have pulled back spending. We should be surprised that post-lockdown spending has held up as well as it has and s...

2023-03-16 12:00:00 ET Summary Return volatility has a periodic tendency to cluster and also cycles from high to low and back again through time. Market volatility has recently spiked and briefly clustered but has been sliding over the last several weeks and is currently approachi...

2023-03-16 09:53:08 ET Summary Interest rates have risen quite a bit over the past year, and the Federal Reserve looks set to continue that trend to combat inflation. Already, however, we are seeing significant signs that inflation is dying down, with some of the decline not havin...

2023-03-16 06:58:31 ET Summary A slowly cooling inflationary environment may not be enough for the economy to avoid further rate hikes in March. Increasing pressure on the banking system has culminated in the failures of institutions such as Silicon Valley Bank. Significant up...