S&P 500 Declines On SVIB Contagion Fear – Head Over Heels

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S&P 500 gave up the two opening rebounds as the SVIB meeting FDIC – and the contagion fears – hit, forcing a very sharp reversal in short-term yields, with 25bp Mar rate hike now being the base scenario. The bank run fears are overdone (unfounded) and should result in dialing back the hammering in my view, with the real problem being old fashioned deposit outflows as risk-free rate of return (in CDs, T-Bills and money market funds that ultimately park reserves at the Fed whenever short-dated Treasuries are in short supply). Q4 2022 hedge fund letters, conferences and more And no other problems…

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