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Higgins Capital Management, Inc.

Lessons From Silicon Valley Bank

“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.


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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.

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Ray Higgins
San Diego