Thanks Ayelet! Even a blind squirrel finds an acorn (a good trade) from time to time! 🐿️👍

Great article, Martin. Apart from SVB's ALCO failings, I am  not sure enough attention has gone to SVB's somewhat loose interpretation of anti-tying regulations. It seems like quite a lot of the deposits were there for reasons other than corporate treasury apathy...

Thanks Duanne

Hi Harry.  Even a blind squirrel finds an acorn (in my case a decent investment hopefully!) from time to time.

As I wrote, Powell has a very tough week.  Hiking while banks are blowing up is not a good look but neither is uncontrolled inflation.  With respect to the financial system, we operate in a fractional reserve banking system (and have done for 1000s of years).  That system requires trust which is in short supply when depositors start losing money.  I don't think we have seen the last failure yet.

I am in the transition from thinking it was all a bit early / gimmicky to beginning to think that it has major societal and investment implications.  Not clear to me yet that there are any 'long' investment plays yet.  For example, any 'AI opportunity' within NVDA already seems fully priced to me.

Thanks.  The cover image for this week’s note was generated by MidJourney’s image generator with the prompt: “Blind Squirrel bending over backwards to dodge bullets from The Agents in slow motion using the bullet time effect as in the scene from The Matrix movie. Hyper - realistic. Image inspiration: [link to still image of Keanu Reeves in the movie on the web].”