“How did you go bankrupt? ... Gradually, then suddenly.” - Ernest Hemingway.
Here are lessons from the failure of Silicon Valley Bank.
First: This is the largest U.S. bank failure since the GFC of 2008. ... and it happened fast ... reportedly in only 48 hours. Is history rhyming?
Second: Structural imbalances are driving the Fed’s interest rate action.
Third: Rising interest rates have nuanced consequences. Beware!
Fourth: Bank failures are one of the early indicators that economies may be in trouble.
Fifth: The stock market is a lagging indicator. Don't wait for it to tell you what to do.
Sixth: Don't believe anything you hear and only half of what you see. If your gut is telling you to do something, listen carefully.
Seventh: Portfolio Rescue begins with being proactive. Coulda, Woulda, Shoulda is painfully expensive. ... if not terminal.
Eighth: Catastrophic losses are hard to make up. Especially in retirement plans. Capital preservation should be your priority.
Ray
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The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.
#fiduciary #financialadvisor #wealthmanager #SVB #SiliconValleyBank #bankfailure
Ray Higgins
San Diego