The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. BREAKING: UBS has taken over Credit Suisse at a heavily discounted price...The Swiss National Bank is also giving UBS a line of credit of $100bn.....The deal is designed to settle/soothe markets - I see it as a band aid solution; THIS BANKING CRISIS IS ALIVE AND KICKING.
2. The FEDERAL RESERVE digitally printed $300bn last week to bail out banks..... the US market sold off while GOLD/SILVER + GOLD Miners were up!!...Is your SUPER positioned???
3. The Japanese government bond market is doomed - when it CRASHES the country's banks are stuffed....going to get crazy!
4. Argentina increased interest rates by 3% to 78% to combat inflation that is over 100%...It's financial system is completely broken.
5. Chilean SILVER mine supply was down 14% in Jan 2023 (source SRS Rocco Report)....shrinking supply + rising demand + central bank money printing = a coming SILVER BOOM!! Let's go!!
ASX Market Update
ASX 200 up 29 points to 6994
On the back of a positive lead from Wall Street a bit of money came back into our banks. NAB put on 1.6%, CBA added 1.2% and ANZ closed 0.4% higher; I am still maintaining my AVOID rating as our banks WON'T be immune to the chaos in the global financial system.... Just watch this exchange in the US Congress whereby Treasury Secretary Janet Yellen basically sets the stage for a run on small banks as deposits will only be safe in the majors (JP Morgan, Citi, Wells, BofA etc)....The end game for the establishment is to bring in a CENTRAL BANK DIGITAL COIN, so we could be witnessing a controlled takedown.
🚩 Sen. James Lankford Presses Janet Yellen on FDIC Special Exceptions Which Are Accelerating Big Bank Consolidation
"We have seen the mergers of banks over the past decade. I'm concerned you're about to accelerate that by encouraging anyone who has a large deposit in a… https://t.co/p4pgOXyDDf pic.twitter.com/XGLirqU423
— Chief Nerd (@TheChiefNerd) March 16, 2023
FED Chairman, Jerome Powell has cranked up the digital money printer again!...Got GOLD, GOT SILVER, GOT PLATINUM??
The Day Ahead
- Our SPI is down 98 points
- Bitcoin up 1.65% to $27,281 (Sunday morning price)
Movements affecting our resource stocks today (USD)
- BHP in the US was FLAT
- Gold up 3.68% to $1993
- Paper Silver up 4.8% to $22.75
- Platinum up 0.39% to $980
- Copper up 0.78% to $3.89
- Brent Crude down 2.6% to $72.71
- $A buys 66.95 US cents
Asian Market Update
Japan up 1.2%, China added 0.73% and Hong Kong put on 1.64%
The GREAT SILVER DRAIN is happening!!
Still 37 weeks of stock. Dry it up guys 👍
— José Alvarez (@IngJoseAlvarez) March 17, 2023
Global Market Update
DOW down 384 points to 31,861
First Republic shares crashed another 32% on Friday night - every bank board across the country would be having emergency meetings right now.... More PAIN is coming....$30bn was pledged to First Republic from the major banks and it still crashed (after having a suckers bounce last Thursday night).
Check out how important the regional banks are for the US economy....Even Elon Musk responded to the below tweet with "This is a serious risk".
If the Fed does not contain the regional bank collapse, there will be another great depression.
Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending pic.twitter.com/wzTMHxSnXI
— zerohedge (@zerohedge) March 18, 2023
Brits down 1%, Germans off by 1.33% and Frenchies fell 1.43%
Credit Suisse is over as a bank, question is...will UBS swallow it up or will the Swiss National Bank nationalize it?
Kind of surprised we didn't see proper carnage in EU markets.
(I wrote this Saturday morning before the news came out)