SVB Bank Crisis Your Next Steps
Description
SVB Bank Crisis Your Next Steps
Given the enormity of the Silicon Valley Bank collapse, I wanted to share a few thoughts, insights and suggestions for your investments and more importantly for your financial plan. Here's a link to the Video on my new YouTube Channel.
Watch the first video in our SVB Banking Crisis Series on YouTube!
SVB Bank Crisis Your Next Steps
- What to Watch
- What to Avoid
- What to Do
What to Watch
Hopefully, you're not doing what I'm doing... Watching the markets on a daily, hourly, and sometimes minute-by-minute basis. That's my job as your Investment Advisor and I am doing my job!
Last week was a wild and rocky ride on Wall Street. Banking Crisis drama at Silicon Valley Bank, jobs growth (again!), and a persistently hawkish Fed all fueled the headlines. There was no shortage of fireworks, and major U.S. equity indexes markets fell sharply.
In fact, the S&P 500 fell to levels not seen since January.
Tallying last week, the S&P 500 declined by
4.55%, the Nasdaq 100 fell by 3.75%, and the Dow Jones Industrial Average decreased by 4.44%.
What to Avoid
Wall Street and Silicon Valley California were in full panic mode over this past weekend demanding that the FED and Treasury intervene to pull their chestnuts out of the fire.
A few leaders have kept a cool head in this so called banking crisis—but billionaire hedge-fund operator Bill Ackman and venture investor David Sacks (SVB Panic Brokers) had a vested interest in spreading panic.
The FDIC closed SVB, and the agency will try to find a private buyer for the bank. The FDIC was holding an auction that closed Sunday afternoon.
Market Silicon Valley Bank
Venture capitalists and tech startups felt pain last week as Silicon Valley Bank became insolvent, sparked by the company’s need for liquidity, which resulted in an old-fashioned bank run.
The majority of the forty-year-old institution’s clients are venture capitalists and tech startups. The California Department of Financial Protection and Innovation (DFPI) took possession of the bank last week and appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver.
SVB and the ensuing fallout is an ongoing story. The latest information shows that the U.S. government has indeed stepped inand will backstop depositors and financial institutions associated with Silicon Valley Bank. This occurrence is reminiscent of the Too Big to Fail phenomenon from 2008.
What to Do Next
There are some things that SVB Bank could have done to avoid the crisis, ironically, some of those same things are helpful for every investor. Mike Tyson was right about one thing. Everybody's got plans - until they get hit. Before the next wave of market volatilty and uncertainty comes our way, I hope you'll take me up on my offer to help you do the following 3 things BEFORE we get hit...
- Update Your Financial Plan
- Know Your Risk Number and What's In Your Portfolio
- Let's Have That Conversation
Your Next Steps
- Visit BayRockFinancial.com when you're ready to work on your financial plan.
- Get Your Risk Number CLICK HERE to take our 5 minute Risk Survey
- Book your Free Consultation with a Certified Financial Planner™ Professional
- Connect with Jim Munchbach on LinkedIn
- Subscribe to the Missional Money Podcast in iTunes and everywhere Podcasts are Played
- Subscribe to BayRock News for updates on the SVB Bank Crisis and Your Next Steps
Mentioned in this episode:
Missional Money Intro 2023
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