Quote of the Day
"Episodes of acute inefficiency create the greatest opportunities in terms of the level of divergence from fair value, which will often be extreme. Exploiting them is, however, no easy task."
(Joe Wiggins)
Chart of the Day

Why managed futures funds have had a rough go of late. (chart via @ycharts)
Strategy
- What investing lessons can we cull from the downfall of SVB? (portfoliocharts.com)
- Safe assets aren't safe if there is a duration mismatch. (fortunesandfrictions.com)
- Even great companies will 'decline eventually.' (neckar.substack.com)
Silicon Valley Bank
- There is plenty of blame to go around for the downfall of SVB including the pandemic. (theirrelevantinvestor.com)
- A lot of banks have big unrealized underwater bond portfolios. (ft.com)
- Social media will change any future financial crisis. (theatlantic.com)
- Josh and Michael talk SVB with Samir Kaji who is CEO and co-founder of Allocate. (youtube.com)
- Where SVB and Goldman Sachs ($GS) went wrong with the bank's failed equity offering. (ft.com)
- SVB failed in its communication strategy. (axios.com)
Venture capital
- There's no way other banks will be as startup-friendly as SVB. (news.crunchbase.com)
- Y Combinator is getting out of the business of late state investing. (cnbc.com)
- VCs are beating the bushes to invest in AI startups. (nytimes.com)
- What's new in GPT-4. (engadget.com)
Economy
- February CPI showed 6.0% growth over the past year. (calculatedriskblog.com)
- Shelter inflation is the main driver of CPI at this point and the Fed should take note. (bonddad.blogspot.com)
- The expected path of Fed rate hikes has changed, post-SVB. (econbrowser.com)
- The Fed knows what to do in a crisis. (stayathomemacro.substack.com)
Earlier on Abnormal Returns
- Research links: reducing noise. (abnormalreturns.com)
- What you missed in our Monday linkfest. (abnormalreturns.com)
- Adviser links: holistic financial guidance. (abnormalreturns.com)
- Are you a financial adviser looking for some out-of-the-box thinking? Then check out our weekly e-mail newsletter. (newsletter.abnormalreturns.com)