Dodging bullets in The Matrix
The Blind Squirrel's Monday Notes, March 20th 2023
Fortunately, the 🐿️’s first (and only) experience at the business end of a bank failure took place 6 months into my career. The bond market has decided that the failures of SVB and Signature have created enough of an issue with respect to stability of the US financial sector that the Fed’s inflation fight may now need to take a back seat.
We break down Jerome Powell’s price stability versus financial stability dilemma. He has the toughest press conference of his career coming up on Wednesday.
The 🐿️ sees the “pivot” crowd salivating to buy risk assets but is happy to watch and wait. We go into this critical week sitting with our highest cash level in almost 12 months.
Separately, we have had a eureka moment on artificial intelligence and feel uncomfortable about its implications from both a societal and investment perspective.
Finally, we cannot help feeling that we are getting close to a place where oil is now both pricing both a bone-crunching global economic recession and a …