Hi members,
I warned a couple of years back why it is a bad idea to keep most of your cash in the Banks. Since the SVB crisis, we can see many other banks’ credibility also being questioned. Take for example Credit Suisse, they got rescued with the takeover from UBS. However it came at a cost, they decided to wipe out $17bn of AT1 bonds in the Credit Suisse deal. This has enraged many of the bondholders who have pledged to sue the Swiss government.
In my webinar in 2020, I mentioned how the Banks in Cyprus took 47% of their client’s cash without their permission to bail them out of the banking crisis. It was illegal but the ECB let them do it. Countries such as Argentina, Venezuela, and many other South American countries are facing high inflation until this day. It has ripped apart their economies within a matter of a year. Your bank could be next, it’s scary times.
Last week you had China strike a deal between Saudi Arabia and Iran. They have been at war for several years so this is huge. It’s a big step towards trying to get them closer to the BRIC countries. As you know the BRIC countries are forming up their own currency to move away from the Dollar. Saudi Arabia is already considering buying OIL in the future using Yuan. This will be a massive blow for the US, as its another step in them losing their safe haven status.
This was not talked about in the US media about a month ago when all of this was happening, but suddenly now they are
A month ago the media didn’t talk about the US losing its reserve currency status and how devastating that would be for Americans. I was laughed at for saying this a year ago. It’s happening… fast. pic.twitter.com/a79WtOmN3O
— Kim Dotcom (@KimDotcom) March 27, 2023
They have also struck a deal with Brazil
China struck deal with Brazil on Yuan
Furthermore, Deutsche bank seems to be the next focus for consumers in the market. Bank shares have been sliding since last week due to this issue. Analysts backed Deutsche’s strength despite a 9% drop on Friday that came after the cost of insuring its debt against default surged. Fears over the health of the broader financial services industry have been exacerbated as well following the failures of Silicon Valley Bank and Signature Bank and the forced takeover of Credit Suisse Group AG (SIX:CSGN) by rival UBS Group AG (SIX:UBSG).
Investors switch to Bank fundamentals
I also mentioned that the Hedge funds have not been performing very well in the past couple of years. Overall, hedge funds fell 4.25% last year, according to the HFRI 500 Fund Weighted Composite Index, which tracks many of the biggest global hedge fund performances. Equity hedge funds notched the worst performance in 2022 among the four main hedge funds categories tracked by HFR. Still, their 10.37% loss still managed to beat the S&P 500 (.SPX) , which fell 19.4% in its worst year since 2008. They are saying it wasn’t as bad as the SP500 loss but 10.37% plus add the annual charges they add for their clients to manage their funds. So you still made a loss for letting someone handle your money.
Hedge funds report worst loss since 2018
Here is an article explaining how Hedge funds work.
I then went through how I was shorting the NASDAQ using ETFs. Here is an article explaining this.
I also warned you all to keep an eye on the broker SWAP charges for particular pairs. It matters especially if you are holding the trade for more than a day. For some pairs, you will get charged less and some actually pay you interest. This depends mainly on the interest rates that a particular currency is offering.
For the rest of the webinar I went through the M2 setups and Ashley showed the Earth and Sky setups.
You can watch the full webinar recording below:
Kind regards,
Marc
