VFH News and Press, Vanguard Financials From 03/20/23

2023-03-20 15:15:00 ET Summary SVB collapse, consequences, and implications for technology. Role of productivity improvement in addressing inflation. What we learned from industrial tech earnings - identifying focus areas within our macro framework. The collapse of t...

2023-03-20 09:00:00 ET Summary The Fed's balance sheet will be getting much larger. Europe faces a serious inflation problem. Global markets did not "seize up" this week. It is commonly believed that the "Great Financial Crisis" could have been avoided had the Federa...

2023-03-20 02:17:48 ET Summary The banking crisis has resulted in a new slate of recommendations to deploy spare capital into suffering bank stocks. Inflation and the debt ceiling still pose massive risks to the market over the next several months. We recommend for those looki...

2023-03-18 09:44:00 ET Summary Just over a week ago, a materially more hawkish narrative from FED Chair Powell at his Congressional Testimony had convinced financial markets that the Fed could revert to a 50 basis point hike in March. However, a wild week of volatility marked by t...

2023-03-17 18:44:00 ET Summary Fighting high inflation is tough enough, but Fed has been trying to tame pricing pressure when the economy is showing signs of weakening, at least in some corners. The central bank normally eases monetary policy and cuts interest rates when economic ...

2023-03-16 08:20:00 ET Summary We use buying in ProShare short ETFs as proxies for measuring actual short selling by investors. The ratio of the money buying the two ProShare financial short ETFs versus the long financial ETF is 4.24 and rapidly approaching last year's all-time hi...

2023-03-16 01:24:00 ET Summary The crisis has broader macroeconomic implications and serves as a potent reminder that the banking system, asset markets, and the broader economy are all intrinsically linked via interest rates. Recession risks have increased because of the likelihoo...

2023-03-16 00:19:00 ET Summary Runs on banks happen regularly, but this time recent events have sent reverberations across financial markets. We should expect increased regulation and oversight globally. The startup-company niche clientele of SVB must rethink its approach to b...

2023-03-15 11:30:00 ET Summary All over the world, people are moving cash out of low-yielding bank accounts and into higher-yielding deposits. Shareholder equity and retained earnings (tier-one capital) are the primary funding source for banks. Losses in the sector manifest in...

2023-03-14 09:05:00 ET Summary The collapse of Silicon Valley Bank has raised concerns about the vulnerabilities in the US financial system. While SVB is not Lehman Brothers and its collapse is not likely to trigger a financial crisis, it has highlighted some vulnerabilities that ...