Welcome to 2 Question Tuesday. This week’s client submitted questions were:

1. What’s going on with Deutsche Bank?
2. What’s going on in money markets?

It looks like the turmoil in the U.S. banking sector is spreading to Europe. Phil, Mike, and Larry talk about Deustche Bank’s 10% decline last week as the cost of insuring its debt against default surged, which sparked a selloff in European bank stocks. They then address how this turbulence is affecting money market funds as investors to flee to cash in the biggest rush since the onset of the pandemic. Last week, global cash funds posted inflows of nearly $143 billion, the largest since March 2020 and money market funds saw $238 billion in new cash in just two weeks.

Submit your questions to question@2questiontuesday.com

As always, if you have any questions at any time, please feel free to call your adviser directly at (845) 691-4035.