Highlights: The US banking sector crisis seemed to be easing on Monday as regional bank stocks rose, rebounding from the big losses in the past week. The only exception was First Republic stock, which was down another 47%. Focus is on the Fed’s interest rate decision on Wednesday; the market priced in a 73% chance of a 0.25% hike and a 27% chance of no hike at all.

Fed and other central banks try to head off crisis by keeping dollars flowing (2 min read)
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The Fed and central banks in Europe, England, Canada, and Japan announced a coordinated effort to boost the flow of US dollars through the global financial system. The central banks are enhancing the global liquidity of the US dollar by increasing the frequency of the current swap lines between central banks, which are agreements to exchange currencies. The frequency was changed from weekly to daily, effective March 20, until at least the end of April. The effort is to ensure smooth funding conditions amid global banking concerns. 

Volatility is Nothing New (3 min read)
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Last Wednesday, 2-year treasury yields reached 5.05%, the highest since 2006. Unfortunately, it didn’t last and plunged to around 4%, a massive drop for short-term bonds due to the banking crisis. Although the current market is filled with volatility in the banking system, inflation, and rates, investors need to remember that’s the norm if looked back in history. The market is often full of panic, crisis, and unexpected, with periods of relative calm in between. No one will know what happens next, but the ordeal will likely have a long-lasting impact.

5 Top Stocks to Buy Right Now (5 min read)

The recent market selloff was not deep but may have created a buying opportunity for investors. This financial blogger from Motley Fool highlighted five stocks that he believes are fantastic buys right now based on their solid growth potential. His recommendations are Alphabet (GOOGL), CrowdStrike (CRWD), Mercado Libre (MELI), Taiwan Semiconductor (TSM), and Airbnb (ABNB). More on his detailed analytics on each stock is available in the article.

Amazon to cut 9,000 additional jobs, after laying off 18,000 in January (2 min read)
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Amazon will slash 9,000 more jobs in addition to the 18,000 job cuts announced in January. The company has been streamlining costs as it grapples with slowing online sales following the rapid expansion during Covid. 2022 was a challenging year for Amazon as consumers transitioned back to shopping in person, which left the company’s 93% increased headcounts during the pandemic with too many employees. Amazon is undergoing the most extensive layoffs in its history, and its CEO believes it's necessary to better prepare for uncertainty in the near future.

ETFs May Offer a Lifeboat in Roiling Market (2 min read)
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So far this month, safe investments received the most assets from investors amid the worst banking disaster since the 2008 financial crisis. The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and the iShares 7-10 Year Treasury Bond ETF (IEF) gained the most inflow, while the leading outflow was from the SPDR S&P 500 ETF Trust (SPY). BIL, in particular, is recommended by experts as it not only earns 4.35% but is also protected by the US government. This means investors’ investment is protected with no upper limit.

BUG: A High-Risk/Reward Cybersecurity ETF (7 min read)
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The Global X Cybersecurity ETF (BUG) has been one of the top performers in its category since its launch in 2019. BUG invests in companies that will benefit from the increased cybersecurity technology adoption by businesses, governments, and consumers. Despite heavily plummeting in 2022, it still performed better than the Nasdaq 100 and S&P 500 in 3-year total returns. The cybersecurity space can be very volatile but might be a fit for investors looking for growth potential in the long term. More in-depth analysis of BUG is available in the article.

That's it for today! You can reply to this email if you have any comments or feedback.

Thanks,
Thomas

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