These tiny banks have been in trouble for quite some time.
That we know.
The question has been more about whether or not the selling spills into other parts of the market.
So far it has not.
The spikes in volatility in the bond market, for example, have only resulted in volatility in these little banks.
We have not seen it spill into other asset classes, and certainly not in the majority of stocks.
Remember, the S&P500 and Nasdaq100 just closed the month of April at the highest levels in a year.
Where’s the volatility?
The VIX just closed at new 52-week lows last week.
So here’s the deal. [Read more…]