The market is still dealing with the potential fallout of the banking crisis, and Satori Fund’s Dan Niles said it could get a lot worse before it gets better. Investors have been abuzz lately about the possibility that the Federal Deposit Insurance Corporation, or FDIC, would consider providing “blanket insurance” for all banking deposits. In a testimony Wednesday, during Federal Reserve Chair Jerome Powell’s press conference, Treasury Secretary Janet Yellen said the FDIC was not considering it. Niles said the next step in navigating the ongoing crisis starts there and that he believes the government will end up having to do that to put an ultimate end to this crisis. “The next phase is we have to expand the FDIC insurance,” he told CNBC’s “Squawk Box” on Thursday. “If we don’t, this is going to get a whole lot worse. But our belief is that that’s going to occur, you’re going to get this rally … then you get to deal with earnings from all of these tighter lending standards and you have a big issue.” Risky play, a cheap stock and an income play With that road map in mind, investors can set themselves up with a mix of offensive and defensive stocks, he said. For investors who “really want to get out there on the risk curve,” he said sports betting companies could have good opportunity and named DraftKings . He highlighted Meta Platforms , citing the company’s success with its TikTok competitor and its decision to lay off 24% of its workforce. The stock has “just above” a market multiple, he said. Niles also mentioned that 3-month Treasury bills are a good opportunity to get a 4.7% return “with no risk.” However, he said, it’s also important to have shorts to “balance it out,” and he pointed out that many tech companies will likely get hit. He also said in a recession advertising will get hit, making ad tech stocks good short opportunities.