Credit Suisse Gets Bailout | Before the Bell

(3/16/23) Credit Suisse gets a $50-b bailout from the Swii National Bank, the first bank bailout following the Silicon Valley Bank failure. In response, markets rallied off support from the December low, but futures are still struggling with the uncertainty with the banking system. There is much headline risk for investors, and this is where emotional bias can cause trouble. We have reduced risk in our managed portfolios because of the uncertainty of the markets; we don't know what the Fed will do next week. Perspective is key, focusing on where you've been and where you are now. Markets really haven't gone anywhere over the course of the past year. (Markets' closed Wednesday where they'd bottomed back in May!) The Fed is looking at markets' "wealth effect," and whether or not investors are better off now than previously, and is the wealth effect leading to better economic growth? (First Quarter economic growth is expected to be 3.2%). And the Fed is expected to hike rates again because of the "strong" economic data. Taking a longer view, markets are higher than they were three years ago. From that perspective, the Fed sees that all the rate hikes really haven't damaged the markets. And this is why a longer-term perspective is key to understanding where you are, reduce the emotionality, and help make better investing decisions.
Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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