Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Your Bank: "Use This as an Early Warning Signal"

Companies / Banking Stocks May 05, 2023 - 11:14 PM GMT



First Republic Bank "customers had pulled $100 billion in deposits in the first quarter"

More dramatic news on the banking front.

On April 25, investors in the shares of First Republic Bank were hit hard (The New York Times):

First Republic Bank Enters New Free Fall as Concerns Mount
The bank's shares fell by about 50 percent on Tuesday, a day after it said customers had pulled $100 billion in deposits in the first quarter.

As of this writing on April 26, shares are down another 20% intraday.

Of course, there was no way of knowing the precise percentage decline of the bank's shares ahead of time, but we can say that the dramatic developments were no surprise to Elliott Wave International's Head of Global Research Murray Gunn.

On March 31, when the April Global Market Perspective published (Global Market Perspective is a monthly Elliott Wave International publication which covers 50-plus financial markets), Murray showed this chart and said:

Use this for [an] early warning signal ....

... Look at the relative performance of bank shares. If what's going on behind the closed door of banks is all good, the share price should probably not be UNDERperforming its peers. The chart shows that the relative performance of First Republic versus the KBW Bank Index topped out in November 2020. The relative performance had been trending down for many months before problems emerged.

The worry is that investors' confidence in other regional banks -- indeed, the entire banking sector -- could become even more shaken.

The worry is that investors’ confidence in other regional banks – indeed, the entire banking sector – could become even more shaken.

So, what should you do with YOUR money?

Allow EWI to offer 5 alternatives. "Your 5 Top Alternatives to Banks" is a special report excerpted from Robert Prechter's book, Last Chance to Conquer the Crash.

In 2021, Last Chance to Conquer the Crash warned of the banking scenario we’re experiencing now.

There’s still time to protect yourself. But as the book’s title says, the window is closing.

Read “Your 5 Top Alternatives to Banks” now when you sign up for a FREE Club EWI account..

This article was syndicated by Elliott Wave International and was originally published under the headline Your Bank: "Use This as an Early Warning Signal". EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in