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News - What happens now

Like an good old PC game, Credit Suisse is no more.

It was gobbled up by it’s Swiss competitor, UBSin a $3.3bn deal brokered by the Swiss Government over the weekend.

$17bn worth of Tier 1 bonds are out of the window - Written to zero, creating what must be a furious bunch of rich (now poor?) investors.

As a result, yesterday proved to be an interesting day in the markets.

- UBS stocks fell -15% in the opening yesterday, but ended the day in plus in a crazy day where the price was between CHF 14-18.

- DAX index started in -2% but ended in +1%.

- S&P500 index ended the day in +0,9%

- Deutsche Bank started in -11% but ended in -0.5%.

- First Republic went down -47% after they lost their credit rating - Let's see if the big american banks will come to the rescue.

So what now?

In my opinion the dust needs to settle and we need to focus on the FED interest rate decision tomorrow, and then I would expect a slight calm now before the storm.

The storm being the recession coming in, probably around 2-4 months.

When that happens, bonds, gold and defensive assets is usually the right call.

So far 2023 have been crazy and I’m happy with the -3% on the portfolio so far. This is a long-term game.

No crazy decisions, no gamling with money.

We win some, we lose some.

🙋‍♂️ What are you doing out there? 🙋‍♀️

Long-term Martin, out.


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