Highlights: After a very volatile Q1, the S&P 500, Nasdaq, and Dow gained 7.03%, 16.77%, and 0.38%, respectively, for the quarter. It was also the best quarter for the Nasdaq since 2020. Tech stocks continued to be the biggest winner in March as the Nasdaq was up 6.69%, outperforming the S&P 500 and Dow which only rose 3.51% and 1.89% respectively.

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Who will end up paying for the banking crisis: You (4 min read)
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The FDIC is expected to assess a special charge on the banking industry to cover the $23 billion cost of cleaning up the mess left by the recent collapse of SVB and Signature Bank. Large banks may have to foot most of the bill, which could result in higher fees for bank customers and lower savings account rates. FDIC Chairman plans to make the details of the assessment public in May and has hinted he will protect community banks from shouldering too much of the cost. Regardless, fees are likely to eventually be passed on to bank customers.

Key Fed inflation gauge rose 0.3% in February, less than expected (2 min read)
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The personal consumption expenditures price index (PCE), a gauge of inflation that is closely followed by the Fed, rose 0.3% in February, below the 0.4% forecast. The core PCE which excludes food and energy, increased by 4.6% year-over-year, a slight deceleration from the previous month. The new data indicates that the Fed’s rate hikes are starting to help ease price increases in the US. However, inflation is still likely to remain above the 2% target into 2024.

Trump-related stocks surge after indictment (2 min read)

Three stocks with ties to former President Donald Trump rose on Friday following news that Trump faces 30 counts related to business fraud in an indictment from a Manhattan grand jury. Digital World, a blank-check firm seeking to merge with Trump's media venture, rose 8%, Phunware, which developed Trump's campaign mobile app, gained 10%, and Rumble, a conservative video platform that partners with Trump's Truth Social app, also rose 7%. It’s not clear why these companies soared, but they tend to swing widely when Trump makes news.

Nikola shares sink after its $100 million stock offering priced at 20% below market (2 min read)

Electric heavy truck maker Nikola announced a $100 million stock sale after the market closed on Thursday, priced at $1.12 per share, which was 20% lower than its closing price. The news sent their stock 15% lower on Friday and reached a new 52-week low. Even with the discount, there appears to be very limited interest as Citigroup was only able to place about a third of the stocks with its clients. Nikola plans to use the money raised for working capital, which includes the launch of a new electric semi-truck powered by hydrogen fuel cells later this year.

China’s Tech Sector is Surging — 3 ETFs to Play This Trend (7 min read)
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China’s Tech sector has been surging so far in 2023 after some heavy losses in 2021 and 2022. The rally was primarily driven by China’s reopening and news of potential easing in regulatory crackdowns on the country’s private sector. For investors looking to gain exposure to this rebound, this article highlights the KraneShares CSI China Internet ETF (KWEB), Invesco China Technology ETF (CQQQ), and iShares MSCI China Multisector Tech ETF (TCHI). More detail and analysis of each ETF are available in the article.

First Factor ETF Celebrates Its 20-Year Anniversary (3 min read)
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The Invesco S&P 500 Equal Weight ETF (RSP), launched in 2003, was the first factor investing fund. It equally weights the S&P 500 and pioneered alternative methods of weighting stocks in an index, which led to the growth of factor-based ETFs. RSP has outperformed in the past and appeals to investors looking to diversify away from market-cap-weighted or high-fee active strategies. While factor investing has greatly evolved, RSP’s simple strategy and long track record make it a popular choice to include in a portfolio.

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Thanks,
Thomas

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