Fed report shows banks worried about conditions ahead, with focus on slowing economy and deposit outflows (2 min read)
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A Fed report on Monday shows that mid-size banks are tightening lending standards which could pose a threat to US economic growth. Loans for businesses and households now have stricter requirements. Bankers expect these stricter lending standards to continue into next year due to concerns about the economy, deposit outflows, and reduced risk tolerance. Demand for loans has also weakened across different categories. This report reflects the fallout from recent troubles in the banking industry that has already led to four bank closures.

Oil’s sharp slide has surprised markets. But some traders now see a bottom for prices (3 min read)

Oil prices have seen their third consecutive weekly decline, marking the longest losing run this year. However, some traders predict that the slide is starting to bottom out and a significant pickup is expected in the coming quarters. OPEC+’s recent production cuts and a rebound in China’s demand are expected to offset slower demand and keep the market under-supplied throughout 2023. Banks like Goldman Sachs have also kept a high oil price forecast, with the expectation of $95 per barrel by December and $100 per barrel by April 2024.

$5.3 trillion in cash on the sidelines could fuel a bull rally (3 min read)
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Money market fund assets have reached a record of $5.3 trillion due to high-interest rates and weak market sentiments amid recession fear and banking turmoil. The surge in cash holdings has even surpassed the inflows seen after the Lehman Brothers collapse in 2008. Although investors fleeing to cash is a sign of a bearish view, some analysts see this as a bullish setup for the stock market. If ongoing developments in the economy and banking sector turn better than expected, the massive pile of cash could very likely move to stocks, fueling the next bull market.

Buffett on investing in EVs: 'You won't see anyone that owns the market' (2 min read)
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Warren Buffett believes it's too early to determine winners in the electric vehicle (EV) competition due to the high level of uncertainty in the sector. While Tesla currently dominates the US EV market, legacy automakers like General Motors and Ford are gradually gaining market share. Intense competition exists as traditional automakers and startups invest heavily in EV production and infrastructure. Buffett cites the volatility and unpredictability of the auto industry as a reason for Berkshire Hathaway's disinterest in further ventures in the sector.

Follow Buffett and Munger With These ETFs (2 min read)
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Berkshire Hathaway held its annual general meeting over the weekend where Warren Buffett and Charlie Munger shared their latest investment insights. They expressed confidence in the US dollar as the reserve currency despite concerns about the debt ceiling. They also praised Apple as a better business than any owned by them and regret over-selling some shares in the past. Internationally, they see opportunities in Japanese trading firms. For investors who are fans of Buffett and Munger, this article provides ETF examples that follow their insights.

TD enters the bank ETF game (2 min read)
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TD Asset Management has launched a new Canadian bank ETF on the TSX that holds the Big Six banks with a focus on dividend growth. The current biggest weightings are BMO at 27.5% and National Bank at 25.7%, while CIBC makes up less than 5% of the fund. The ETF has a management fee of 0.25% and a medium risk rating. Canadian bank ETFs have gained popularity over the past year amid market volatility and have brought in more assets than any other sector-based funds in Canada.

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Thanks,
Thomas

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