2023-04-14 Markets

While markets continue their recovery and behave mainly in a normal way, there is something somewhat suspicious lurking under the surface.
     The above graph shows the price evolution of the SPDR S&P Regional Banking ETF, an ETF replicating a US regional banks index. After the dramatic fall in the first half of March, you can see that the ETF has continued to deteriorate despite the strong Fed intervention and global support ensuing the banking crisis. In addition, bank lending has slowed quite dramatically in the last four weeks and the US small business survey is giving signs of distress.
     As always, this is a simple observation, not a call to action. And I hasten to remind readers that I am not the only one looking at these statistics – and most probably not the smartest one either.  
[Cover: Bloomberg]