[The Daily Peel... ](=) Mar 28, 2023 | Peel #428 Silver banana goes to... [GoSun. ]( Market Snapshot Happy Tuesday, apes. It was Monday Funday on Wall Street to kick start this wonderful week of degeneracy, and we canât wait to see how the rest of it plays out. Equities opened higher on Monday, not by much, but enough to make me want to cry just a little less when I walked into the office. Subsequently, shares danced around in the classic âwe donât know wtf is going onâ kinda style for the remainder of the session. Ultimately, U.S. indices closed mostly flat once again, running from a -0.47% day for the Nasdaq to a +0.60% day for the Dow. At the same time, it was a bad day to be a treasury bond. Yields spiked nearly all day, with the 2-year climbing from as low as 3.57% to a good few basis points over 4%. The dollar saw some movement as well, although slightly less, as it sold off compared to a basket of other currencies. Letâs get into it. [image]( GoSunâs roster of lightweight, solar-powered outdoor products (think everything from camping stoves to RVs) promise cleaner, all-around better performance than incumbents. Traditional energy sources cannot keep up with todayâs needs because they are vulnerable, inconvenient, and harmful to our environment. That pitch helped them to raise over $2.4M this round. Reasons to Invest: - Letâs talk traction: GoSunâs sales clocked in at $5.87M in 2021, up 50% over 2020; the companyâs leadership team also has multiple exits under its belt
- $570B TAM between outdoor recreation and disaster relief application for portable solar tech (GoSunâs NGO partners include the American Red Cross)
- High-profile placements: GoSunâs products have already been featured on Top Chef and the Science Channel, as well as top publications like Nat Geo and Discovery GoSunâs current round is closing soon and you participate now by investing as little as $250. [Solar Camping Gear Featured on Nat Geo, Discovery, and Top Chef]( Banana Bits - Disney to begin [layoffs]() of 7,000 staffers this week; Bob Iger needs more money for his yacht
- Salesforce [escapes Elliottâs clutches](=) after flexing its profits and slimming down
- [TSMC]() is going to Arizona to make chips and dip
- [This company]() is going down faster than a TikTok trend; thanks, Hinder-burn Macro Monkey Says C&I or Die People who do work that feels important but isnât actually (wonder who that could be) often like to say things like, âwell, itâs not like weâre performing surgery.â Well, in this case, we kind of are. Except, in our case, the patient isnât some 54-year-old father of three getting his appendix removed. Our patient is the +$23tn hoard of goods and services that the U.S. has turned into the most powerful and dynamic economic machine the world has ever seen. So, why are we performing surgery on this big, beautiful economy? Because even supermodels get acne. In actuality, the reasons are obvious. Hindsight is 20/20, but I think deep down, even the most âlive-by-the-hype, die-by-the-hypeâ investors knew there would eventually be a reckoning to come after a +10-years of [ZIRP](. And thatâs exactly what the last year has been, thanks to JPow and his 475-bps adventure. The question facing investors now centers around whether or not weâre on the way out of that reckoning or just getting started. Going by equity prices, you might think weâre on the way out. But, according to a recent report out of Bank of America, the ârealâ economy still matters. And when I say real economy, I, of course, mean construction and industrial (C&I) loans issued by (mostly) small and medium-sized banks. According to Bank of America, the net percentage of banks reporting tighter standards for issuing C&I loans has exploded from roughly -20% to nearly 50% in a period of just over 6 months. According to the chart below, growth like that is far from a good sign for those still holding out hope for a âsoft landing.â The market for C&I loans is almost a $3tn engine to the economy. When a bank issues a loan to a developer looking to build, say, new apartment units, thereâs an enormous amount of economic activity created. Prime examples include: - Hiring workers to take part in the construction
- Hiring developers, architects, consultants, engineers, etc., to plan the building
- The bank paying people to underwrite the loan
- Those working on the building contributing to the local economy
- When finished, landlords collecting rent from the tenants in the building
- Ongoing living expenses like utilities, maintenance, etc., etc., etc. You get the point. Yeah, the size of the loan market is just under $3tn, which seems massive in itself, but greatly understates the true economic impact sparked by these loans. Moreover, C&I loans are like the #3 batter in a small/mid-sized bankâs lineup. First, there are checking and savings accounts, then mortgages, then C&I loans step up to the plate. When the other two strike out, C&I better step up, or the inning is over. With 30-year fixed rates at +6.5% and $300bn of checking and savings deposits fleeing to money market funds in the last two weeks alone, it sure seems like itâs C&I loansâ turn at the plate. Considering the tightened standards, this is something youâre gonna want to keep on your radar. So, weâre definitely performing surgery, as your cocaine / adderall laced hands clearly canât hold still, but ensuring the C&I loan market doesnât utterly collapse like in â08 will be key to the soft vs. hard landing debate if thatâs still a thing. What's Ripe First Citizens BancShares ($FCNCA) â 53.74% â - It wasnât Jamie Dimon, it wasnât Warren Buffett, but it was First Citizens Bank CEO Frank Holding that saved the day.
- Announced late Sunday / early Monday, First Citizens agreed to buy a substantial majority of the failed SVBâs assets, including deposits and branches, sending shares on a +50% ride yesterday.
- Unlike what youâll see below, this move actually does grant some clarity to a sector that desperately needs it. Frank Holding stepped in big time, taking his chance to hold up the regional bank sector but also taking the risk of holding a major L. Let the games begin. First Republic ($FRC) â 11.81% â - If their goal really is to make us as confused and uncertain as possible, federal financial regulators are doing a damn good job of it.
- In the same report released this past weekend, regulators, including the Treasury, Fed, and FDIC, issued statements and other nonsense about how ârecent strainâ could be easing. Sounds great, but in the same breath, regulators said more help could be on the way.
- Iâm sorry, but who hired Big Brother? This is a professional level of double-speak George Orwell could only dream of. âThings are fine, but weâre providing additional support just cuzâ is essentially what they said.
- Now, weâre left to wonder if 1) things are fine, 2) things are fine because additional help is on the way, or 3) things are definitely not fine, but we want you to think they are so we can minimize the additional help that weâre not providing but definitely might be providing if we really need to. Confused yet?
- Me too. Either way, the prospect of further support seems to have been enough for investors, sending shares up almost 12%. What's Rotten Coinbase ($COIN) â 7.80% â - Is Coinbase the new Tesla? I mean, some of the best and most well-respected financial news outlets in the entire world (*cough* *cough* The Daily Peel) have been reporting on this name seemingly nonstop for weeks now.
- Anyway, shares tumbled once again to start the week. This time, the plummet comes amid a big middle finger from the CFTC to Coinbase competitor Binance, but we wonât step on any more content included below.
- Traders likely dumped shares due to elevated regulatory fears aroused by the CFTCâs shenanigans. Despite being a U.S.-based, publicly traded exchange, itâs clear that regulators are out for blood wherever they can find it. I mean, the firm legit just got hit with a Wells notice last week, soâ¦
- Oh yeah, and notable as well is the fact that the CFTC called both BTC and ETH âcommodities.â Recently, the SEC used the same language to describe only BTC and implied that every other digital currency is a security, including ETH. Something tells me this debate is only heating up. Carnival ($CCL) â 4.77% â - Despite what the name suggests, nobody at this company is going to any carnivals, or on any cruises, for that matter, anytime soon, and the reason why is simple: they canât afford it.
- Yesterday, Carnival shot itself directly in the foot by reporting last quarterâs earnings alongside updated guidance for the coming periods. EPS and revenue annihilated estimates, yet the companyâs expectations for a wider loss sent shares sinking.
- The Street had been expecting a loss of $0.28/sh in the C-19-mangled cruise operator, but yesterday, Carnival upped the ante to a loss of $0.34 - $0.42/sh next quarter, causing Mr. Market to get a little queasy. Thought Banana Bye-Bye Binance? As if the world wasnât experiencing enough war right now, the CFTC has officially entered a battle against the worldâs largest digital currency exchange, Binance. The Commodity Futures Trading Commission (CFTC) is a U.S. regulator of all things futures, swaps, and options. To give a gross analogy, they are to derivatives as the SEC is to securities, with some (confusing) overlap. As nobody on Earth knows what the f*ck digital currencies are classified as, least of all the SEC Chair, regulatory showdowns in the industry are kind of up for grabs. Here, the CFTC went big, like Captain Ahab hunting a certain white whale. KYC & AML (know-your-customer and anti-money laundering) laws are a crucial piece to global financial regulation. Stringency in these laws varies, but the U.S. stands head and shoulders above (most) of the rest of the world with robust and borderline manic KYC-AML regs. Combine those with requirements around registration and reporting, and it becomes really hard (and expensive) for internationally-based financial firms to operate on our shores. Naturally, then, some financial firms decide to snub the U.S. market. On the other hand, some accept the regulatory L handed to them by the U.S. government. Finally, some choose another strategy (the wrong one) in deciding to operate in the U.S. but not actually following any of those laws. According to the CFTC, Binance chose that final option. There appear to be infinite violations committed by Binance in the CFTCs view. These range from encouraging customers to use VPNs in order to illegally use the network in the United States to flouting KYC-AML rules because $600 âcan barely buy an AK-47,â according to leaked Binance internal messages contained in the report. Further, there may be direct action against Binanceâs Chief, Changpeng Zhao (CZ), as he and other execs were (allegedly) messaging about topics related to optimizing access to Binanceâs network by U.S. users. If true, thatâs about as red-handed as one can be caught. Right now, itâs all allegations. But for the digital currency space, the last thing they need right now is their biggest player to be starting sh*t with the biggest economy. But hey, BTC is up about 65% YTD, so maybe you cryptoheads smell something the rest of us donât. The big question: Was Binance really dumb enough to commit such blatant violations of U.S. law? How will this impact the development of the U.S.-based digital currency industry and globally? Is it time for a homegrown player to step in now that FTX is dead? Banana Brain Teaser Yesterday â What is something that you always have but you always leave behind? Fingerprints. Today â Itâs 50 bananas off the [Consulting Interview Course]() for the first 3 correct respondents. LFG! An open ended barrel, I am shaped like a hive. I am filled with the flesh, and the flesh is alive! What am I? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line âBanana Brain Teaserâ or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) Wise Investor Says âWhen you lend money, youâre taking someone elseâs risk. When you invest, youâre taking your own risk.â â Peter Lynch How would you rate todayâs Peel? [All the bananas]() [Decent]() [Rotten AF](=) Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](. [ADVERTISE]() // [WSO ALPHA](=) // [COURSES]( // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](. The preceding post was written and/or published as a collaboration between Wall Street Oasisâs in-house sponsored content team and a financial partner of Wall Street Oasis. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. Wall Street Oasis may receive monetary compensation from the issuer, or its agency, for publicizing the offering of the issuerâs securities. This content is for informational purposes only and is not intended to be investing advice. This is a paid ad. Please see 17(b) disclosure linked in the [campaign page]() for more information. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis")
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