Banking turmoil is good for stocks as Fed pumps more cash: fund manager

"It's possible what we're seeing actually, is a lot of people pricing in some stimulation, some liquidity coming in from the Fed which is supporting asset prices and the bond market," he added.

In the wake of SVB's collapse that rattled the banking sector, the Fed has taken steps to pump more cash into the financial system in order to prevent more bank runs. For example, it has created an emergency loan mechanism dubbed the Bank Term Funding Program that will allow banks to raise cash by pledging their bond holdings as collateral.

That can work in stocks' favour because an increase in financial liquidity makes more money available to invest in high-risk assets such as equities. Alongside stocks, bitcoin is also enjoying its best quarter in two years amid the banking chaos as more investors view it as a

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Analysis-Banking woes, Fed keep investors on edge in nervous U.S. stock market By Reuters*BANKING WOES, FED TO KEEP INVESTORS ON EDGE IN WEEK AHEAD AMID NERVOUS U.S. STOCK MARKET $DIA $SPY $QQQ $VIX 🇺🇸🇺🇸 KleeGames bout to drop PlaytoearnGames on the AppStore Announcement IOS RELEASE NEXT MONDAY KleeRun will be 1st P2E game and will soon be joined by KleeKartz and KleeBlast Earn upto $10 daily 💯 schlorships coming too 💜💜 AxieOrigins AxieHomeland P2E GameFi ETH 🤔 are they care about that Or they make super inflation and they buy crypto too Are they print and print to buy crypto? If like that crypto will super bullish and USD will be colaps 🤡👽😱🤣🇺🇸
Source: Investingcom - 🏆 450. / 53 Read more »