In a recent historic deal, Switzerland’s largest bank acquired rival bank Credit Suisse. This follows on the heels of the recent collapse of U.S. lenders Silicon Valley Bank and Signature Bank. Fidelity Vice President of Product Andrew Clee breaks down what this historic deal in Switzerland means for central banks around the world and what it could mean for investors. Andrew says although the market is still digesting the news in some respect, at the same time, markets have reacted. Never before has a transaction like this benefited equity holders above debtholders. In response, the 2-year treasury yield curve shifted by 8 standard deviations, an unprecedented move never seen before. Along with rallies in the 10 year, bonds are now moving the opposite direction of stocks, which is good for the 60/40. Clee also highlights now more than ever in this type of market environment, financial advice has never been more crucial. Investors should stay defensive and diversification is critical. Recorded on March 20, 2023. 

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