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As Archegos’ $ 30 billion margin call saga unfolded last week, some fundamental lessons shone from the smoke and dust of a major market crisis. None of these three lessons are new, but all are worth reviewing

Playing the game the way Archegos did it isn’t an investment – it’s more like trading. And the biggest lesson of all is knowing the difference between the two

The week started as Wall Street continued to unload blocks of Archegos Capital Management’s stocks, volumes were low and stocks were mixed towards the end of the quarter, however, following the announcement of the president’s infrastructure plan, indices rebounded The S&P 500 broke 4000, yields fell and OPEC raised production targets in the short week – no trading on Good Friday – the

Dow Industrials

0 upright 2% on 3315321; the S&P 500 had increased 1% by 401987; and the

Nasdaq Composite

Rose 26% on 1348011

Strong sales drove

ViacomCBS

and Discovery were up 32% and The $ 30 billion sell-off was driven by margin calls on shares of Archegos, a family office of Bill Hwang, founder of Asia Tiger Management , triggered Credit Suisse and Nomura reported losses from a US. Client who appeared to be Archegos; Credit Suisse also suffered losses in the recent collapse of Greensill Capital. Goldman Sachs and Morgan Stanley sold faster to contain their losses but gain regulatory scrutiny

President Biden announced the first part of his infrastructure plan, $ 2 trillion over 10 years for roads and bridges, broadband access, semiconductor R&D and clean energy Biden plans to pay for the plan by reducing corporate taxes from 21% to 28% increases and levies taxes on foreign revenues Earlier this week, he announced a plan to ramp up offshore wind farms

Covid cases, hospitalizations and deaths rise even if vaccinations go up, Biden said there would be enough vaccine for 90% of US Adults up to 19 April and said that pharmacies that offer vaccinations will be closed by April 17000 to 40000 would grow He also responded to alerts from the Centers for Disease Control and Prevention by urging states to reintroduce mask mandates and slow down reopeningS. 916000 new jobs created

A container ship stuck in the Suez Canal was released on Monday after dredgers, aided by the tide and full moon, cleared the bow and tugs freed it. About 420 ships moved again and trade resumed

The Wall Street Journal reported that Micron and Western Digital are considering offers to buy Japanese semiconductor maker Kioxia Holdings for $ 30 billion. Kioxia was considering a public offer. News Corp, parent company of Barron’s publisher Dow Jones, agreed to to purchase the consumer arm of educational publisher Houghton Mifflin for $ 349 million The Federal Trade Commission wants to block a vertical merger of the Illumina genome sequencer with Grail, a blood-based spin-off

As Archegos’ $ 30 billion margin call saga unfolded last week, some fundamental lessons shone from the smoke and dust of a major market crisis

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Margin Call

World News – FI – 3 Investing Lessons of the Archegos Crackup

Source: https://www.barrons.com/articles/3-investing-lessons-from-the-archegos-crackup-51617406361