Morning Market Download from Invincible Money

Personal finance + economics + markets

Staying on top of the markets, economics and the global issues that affect your money takes a lot of time and effort. We distill it down to a quick 5 minute read to help you make better money decisions.

Market Responds to Bank CollapsesInvestors are now talking more about a recession than inflation and are piling into bonds. The rate of the U.S. 2-year bond has gone from 5% to 4% and the 10-year went from 4% to 3.4%.

A week ago there was an 80% probability of a 50 point hike and that has fallen to a 72% probably of a 25 point hike at the next Fed meeting on March 22.

Basically, investors are thinking that something finally broken, which will slow down the economy. If that happens the Fed can ease up on the rate hikes or even pause at the next meeting.

The market was down yesterday, lead by the bank stocks, but up about 2% on the inflation numbers being released this morning showing an annual increase of 6%, down from 9% at the peak. Inflation is slowly coming down, but eggs are still leading the charge.

How Much Did the CEO of SVB Lose?No one cares about the executives of the banks that went under due to bad management, but just out of curiosity, how much did the CEO lose? About a year ago at the peak of the market, his stock was worth $74 million. Current value: $0. Oops.Read more about it here.

Politics - all is finePresident Biden addressed the nation and reassured everyone that "everything is fine" and that no taxpayer money will be used in the bailouts. The FDIC plans to socialize the losses by asking the surviving banks to pay into a fund to compensate for the losses.

Crypto Much to the surprise of many, crypto has been up as SVB and other banks have collapsed. It looks like the narrative of taking custody of your own money and controlling it is alive and well. BTC is up 10.4% and ETH up 5.6% just in the last 24 hours.

Be a Better Investor

Investor Spotlight - Bill Ackman

Bill Ackman was in the news over the weekend pitching the necessity for the U.S. government to bail out Silicon Valley Bank. Who is this guy?

He is a well-known investor and hedge fund manager who is the founder and CEO of Pershing Square Capital Management. Ackman is known for his activist investment style, where he takes large positions in companies and then works to influence their management and strategy.

Ackman typically invests in undervalued companies with strong growth potential and then seeks to unlock that value through various means, including management changes, mergers and acquisitions, and other strategic initiatives. He has been known to take large short positions in companies that he believes are overvalued or have weak fundamentals.

One of Ackman's most famous investments was his billion-dollar bet against Herbalife, a multi-level marketing company that he believed was a pyramid scheme. Ackman's short position in Herbalife drew significant media attention and sparked a heated debate among investors and industry experts.

Overall, Ackman's investment style is characterized by a deep understanding of a company's fundamentals, a willingness to take significant positions in individual companies, and an activist approach to driving change and unlocking value.

Keep Your MoneyHow do you make the most of your hard-earned money? Avoid losing it to mistakes like these. Here are 3 common mistakes investors make:

1. Chasing performance by buying hot stocks or funds that have recently done well.

2. Failing to diversify investments across different asset classes, sectors, and geographies.

3. Ignoring the impact of fees and expenses on investment returns.

What section did you like the most in today's newsletter? Please reply to this email and let me know!

Thanks for reading,

Trajan King