Hey Powell...Do You Feel in Charge?

[] [View in browser]( [View in browser]( [] MAR 14 2023 Hey Powell…Do You Feel in Charge? [] [] DON YOCHAM Incentives Matter It’s official – the Federal Reserve has lost control. It can’t keep interest rates high without driving even more deposits out of the banking system. It can’t cut interest rates without setting the stage for massive inflation. And, whether on the back of continued interest rate increases or as a result of rising inflation premiums, bond yields are heading higher. That means more deposit flight, more forced losses on bank balance sheets, and more bailouts. Powell may say he’s in charge of the situation. [He’s not](. The past weeks regulatory unwinding of Silvergate, Silicon Valley Bank, and Signature Bank have exposed the extreme fragility of a system far too reliant on free money. The financial press attributes these failures to concentrated deposit bases. Silvergate ([SI]( banked crypto clients. Silicon Valley Bank ([SIVB]( catered to high-tech startups. Signature Bank ([SBNY]( dabbled mostly in real estate. But I find that attribution superficial because it glosses over the real cause - perverse incentives. Zero percent short-term interest rates and massive direct COVID stimulus flooded banks with [literally trillions of dollars in deposits]( from 2020 through 2022. Moreover, that deposit boost was preceded by more than a decade of essentially free money. Couple that confidence in cheap, secure funding with the Dodd-Frank Act that allowed banks to ignore losses on bond holdings, and you get all the incentive you need to leverage a system beyond the breaking point. But there are systems out there with the right incentives. Systems that thrive no matter who is in charge. And my friend Jeffry Turnmire is just the person to [tell you all about it](. He’s going [live tonight at 7 pm ET]( with all the details you need to protect yourself from fiat’s fouled up incentives. Take the time to see what [Jeffry has to say]( and I expect you’ll come away with a solution that puts you back in charge of your money. [] [] Don Yocham, CFA [] [] JEFF ZANANIRI Run on the banks… This could be bigger This week, there’s [something obscure]( happening in the stock market… The S&P 500 is undergoing one of its “rebalancings” – meaning that Wall Street institutions will be forced to buy shares of certain stocks… And tank the shares of others… How does it work? And how can you protect yourself? [Click here and I’ll give you exactly what you need to know](. It all starts Wednesday… And I’m holding a live session for it (free) at 1pm ET. See you then, Jeff Z [] [] JEFFRY TURNMIRE’S 30 MINUTES OF AWESOME 🎥 5pm ET TONIGHT: CPI, PPI, FOMC, Banks.. OH MY!! Wouldn’t you know, we enter a data heavy week with CPI and PPI data releases setting us up for next week’s FOMC meeting, and the banking system breaks. Will the Fed stick to its inflation-fighting guns or is this the Great Pivot? Are we back on the inflationary path? Can contagion be contained? It’s a lot to get your head around. We’ll discuss all this and more at tonight’s [“30 Minutes of Awesome”](. Every Tuesday at 5pm ET, I go [live on YouTube]( discuss the top-of-mind risks you should consider in the week ahead. Plus, I’ll share with you what I am looking for to confirm that the market’s headed higher. And, as always, I take requests. Join me this evening at 5pm ET [right here](. Jeffry [] SCOTT WELSH Have Another Chip Did the world end? I’m pretty sure the world ended last weekend. No? Silicon Valley Bank depositors were guaranteed their money? Regional banks were all going under and then recovered (as of this writing)? And the market did a great March 2020 impression and reversed so fast the world’s head spun? Crazy. Fortunes seem to be dramatically changing every hour on the hour as the market is whipsawing violently. And while it’s doing that, quietly, chip-makers are doing quite well. During the Bear Market, the semiconductor sector got hammered. [] Pandemic demand dipped and chip stocks tanked. But look at the right side of that chart of the Van Eck Semiconductor ETF ([SMH](. Since last fall, it’s been rising substantially. It is fully in bullish territory. Which means chip stocks are doing the same. Advanced Micro Devices ([AMD]( is a volatile big name that traders love to trade. They ride it when it’s hot and drop it when it’s cold. And it’s warming up now. A break above $88.95 could lead to a big move. [] Chip stocks like AMD were dead and buried. But now it’s alive and surging. We’ll keep an eye on it. Happy trading, Scott [] [] This Week On “Roundtable with Don Yocham”... Are we back to QE forever? Will the Fed exercise its put? Join me and my guests Jeff Zananiri and Garrett {NAME} for a special “Banking Crisis” session [right here](. [] MAR 14 2023 Hey Powell…Do You Feel in Charge? [] [] DON YOCHAM Incentives Matter It’s official – the Federal Reserve has lost control. It can’t keep interest rates high without driving even more deposits out of the banking system. It can’t cut interest rates without setting the stage for massive inflation. And, whether on the back of continued interest rate increases or as a result of rising inflation premiums, bond yields are heading higher. That means more deposit flight, more forced losses on bank balance sheets, and more bailouts. Powell may say he’s in charge of the situation. [He’s not](. The past weeks regulatory unwinding of Silvergate, Silicon Valley Bank, and Signature Bank have exposed the extreme fragility of a system far too reliant on free money. The financial press attributes these failures to concentrated deposit bases. Silvergate ([SI]( banked crypto clients. Silicon Valley Bank ([SIVB]( catered to high-tech startups. Signature Bank ([SBNY]( dabbled mostly in real estate. But I find that attribution superficial because it glosses over the real cause - perverse incentives. Zero percent short-term interest rates and massive direct COVID stimulus flooded banks with [literally trillions of dollars in deposits]( from 2020 through 2022. Moreover, that deposit boost was preceded by more than a decade of essentially free money. Couple that confidence in cheap, secure funding with the Dodd-Frank Act that allowed banks to ignore losses on bond holdings, and you get all the incentive you need to leverage a system beyond the breaking point. But there are systems out there with the right incentives. Systems that thrive no matter who is in charge. And my friend Jeffry Turnmire is just the person to [tell you all about it](. He’s going [live tonight at 7 pm ET]( with all the details you need to protect yourself from fiat’s fouled up incentives. Take the time to see what [Jeffry has to say]( and I expect you’ll come away with a solution that puts you back in charge of your money. [] [] Don Yocham, CFA [] [] JEFF ZANANIRI Run on the banks… This could be bigger This week, there’s [something obscure]( happening in the stock market… The S&P 500 is undergoing one of its “rebalancings” – meaning that Wall Street institutions will be forced to buy shares of certain stocks… And tank the shares of others… How does it work? And how can you protect yourself? [Click here and I’ll give you exactly what you need to know](. It all starts Wednesday… And I’m holding a live session for it (free) at 1pm ET. See you then, Jeff Z [] [] JEFFRY TURNMIRE’S 30 MINUTES OF AWESOME 🎥 5pm ET TONIGHT: CPI, PPI, FOMC, Banks.. OH MY!! Wouldn’t you know, we enter a data heavy week with CPI and PPI data releases setting us up for next week’s FOMC meeting, and the banking system breaks. Will the Fed stick to its inflation-fighting guns or is this the Great Pivot? Are we back on the inflationary path? Can contagion be contained? It’s a lot to get your head around. We’ll discuss all this and more at tonight’s [“30 Minutes of Awesome”](. Every Tuesday at 5pm ET, I go [live on YouTube]( discuss the top-of-mind risks you should consider in the week ahead. Plus, I’ll share with you what I am looking for to confirm that the market’s headed higher. And, as always, I take requests. Join me this evening at 5pm ET [right here](. Jeffry [] SCOTT WELSH Have Another Chip Did the world end? I’m pretty sure the world ended last weekend. No? Silicon Valley Bank depositors were guaranteed their money? Regional banks were all going under and then recovered (as of this writing)? And the market did a great March 2020 impression and reversed so fast the world’s head spun? Crazy. Fortunes seem to be dramatically changing every hour on the hour as the market is whipsawing violently. And while it’s doing that, quietly, chip-makers are doing quite well. During the Bear Market, the semiconductor sector got hammered. [] Pandemic demand dipped and chip stocks tanked. But look at the right side of that chart of the Van Eck Semiconductor ETF ([SMH](. Since last fall, it’s been rising substantially. It is fully in bullish territory. Which means chip stocks are doing the same. Advanced Micro Devices ([AMD]( is a volatile big name that traders love to trade. They ride it when it’s hot and drop it when it’s cold. And it’s warming up now. A break above $88.95 could lead to a big move. [] Chip stocks like AMD were dead and buried. But now it’s alive and surging. We’ll keep an eye on it. Happy trading, Scott [] [] This Week On “Roundtable with Don Yocham”... Are we back to QE forever? Will the Fed exercise its put? Join me and my guests Jeff Zananiri and Garrett {NAME} for a special “Banking Crisis” session [right here](. [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 495 Town Plaza | Ponte Vedra | FL | 32081 [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 495 Town Plaza | Ponte Vedra | FL | 32081 [Prosperity Pub](