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A gambler for the US FRC Bank

For Risk takers only~!!

Currently, the market for the US is downfalling at a fast rate, especially for FRC stocks, it is expected that FRC will be the next bank to be closed down during the recession period. But nevertheless, I see this as an opportunity to bounce back from FRC. Recently they got a $30 billion lifeline from some of the nation's biggest lenders, including JPMorgan (JPM), Citigroup (C) and Bank of America (BAC), and Wells Fargo (WFC) each of which poured in $5 billion each. Also, Goldman Sachs (GS) and Morgan Stanley (MS) provided $2.5 billion each while BNY Mellon (BK), PNC Bank (PNC), and State Street Corp. (STT) put in a billion dollars each.
Still, that is a huge disadvantage for FRC as First Republic can only request other banks to come to its rescue because it probably couldn't have benefited much from the Federal Reserve's new Bank Term Funding Program. Unlike Silicon Valley Bank (SVB), First Republic didn't hold enough eligible securities that it could pledge to meaningfully.
In conclusion, FRC is like gambling stocks in which you either get high returns in the future or no returns at all depending on how the market is moving.

My take: I will still invest a small amount in the current state and monitor the market during the predicted recession period will probably gamble my way into the middle of the expected timeline if the market is recovering but still lesser than the amount I bought before the recession period.
outcome : (If FRC avoided recession period) at least I will still have the small funds which I bought before the "expected recession period" to cushion my future investment in their stocks.
(If FRC did not avoid recession period and continue to down fall) I will not have any expected funds return during the recession time, and it would be a gamble game with the markets, hopefully it will bounce back and be stronger than b4.
(If FRC closed down) GameOver~!!



Things to take note of: Financial experts' prediction of the US recession period is April~june period or July~September period meaning most likely US stocks will continue to downfall in most industries inclusive of banks and technologies.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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