An analysis of the bank’s collapse, the implications for its clients, the ongoing risks to other banks, and the broader market and economic implications. Early on the morning of May 1st, the FDIC seized First Republic Bank and subsequently sold it to JPMorgan Chase Bank. First Republic is the second largest bank failure in U.S. … Continue reading First Republic Bank – “It WAS a Privilege to Serve You”
In 2022, equity markets faced a major dilemma. Inflation had launched from core CPI of barely 1% to a level quickly approaching 7%. The economy was growing at a fast pace and corporate earnings estimates were seemingly ratcheting higher every week. Equity valuations were coming off of their 2021 peak at forward P/Es of 23.5x … Continue reading Now What?
After a forgettable 2022, a year that accomplished the worst 12-month performance on record, U.S. Fixed Income markets were set to return to something of a more placid environment in 2023. The Federal Reserve was still clearly in hiking mode, yes, but there was light at the end of the tunnel. Entering 2023, the Federal … Continue reading Fixed Income and Credit: Never a Dull Moment at the End of a Cycle
It has been a while since investors have had to review the rules around FDIC and SIPC insurance, but that is not because of an absence of bank failures, but rather an absence of spectacular failure. While 2021 and 2022 both recorded zero bank failures, that was not the case for 2019 and 2020 – … Continue reading Déjà Vu All Over Again
The recent banking crisis, starting with Silicon Valley Bank’s collapse in early March, could have widespread impacts on the markets and economy. The Federal Reserve’s efforts to combat inflation through monetary tightening over the past year have fueled the crisis. The Fed has raised short-term rates from 0% to 5% since March 2022. Simultaneously, it … Continue reading The Banking Crisis: The Impact Beyond the Initial Failures
The banking sector has been engulfed by a crisis of confidence. In just a few weeks, numerous events have shaken the market and banking industry. These include the failures of Silicon Valley Bank and Signature Bank, which were the second and third largest U.S. bank failures, respectively; the wind down and liquidation of Silvergate Bank; … Continue reading A Crisis of Confidence
There are known knowns; there are things we know we know. We also know there are known unknowns… “There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown … Continue reading Known Unknowns
Less conventional asset classes including Real Estate, Natural Resources and Alternatives helped insulate our portfolios in an incredibly challenging market environment last year. By most measures, 2022 was a challenging year for financial markets. Scratch that… “challenging” doesn’t quite do it justice. Painstaking? Frustrating? Agonizing? We’ll let you choose your own adjective but suffice it … Continue reading Overlooked but Not Forgotten
Aggressive interest rate hikes led to unprecedented losses in the bond market. Amidst continued aggressive monetary tightening by the Federal Reserve, the U.S. bondmarket notched its worst year on record in 2022. At the start of the year, the Federal Funds Target Rate Range stood at just 0-0.25%; by year-end, the range was 4.25-4.50%. Two … Continue reading Credit Markets: 2022 Marks Worst Year for Bonds in History
Spotting the silver lining; Utilizing financial planning to lock in lower stock valuations during a bear market. Arguably, 2022 will offer a future case-study that the old adage “buy low and sell high,” is the most appropriate long-term investment strategy. Sure, “buying low” in 2022 may have felt more like getting proverbially kicked in the … Continue reading Making Smart Stock Moves in a Down Market
