14 Mar 2023
SVB Collapse: Cracks Emerge
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
If you are not aware, SVB (Silicon Valley Bank) has failed and the US Treasury and US Federal Reserve has stepped in to guarantee that depositors will continue to have access to their cash which is exactly what is needed.
SVB shareholders however will likely be wiped out.
Once again another cautionary reminder of the importance of diversification.
In respect of the US Federal Reserve current policy of increasing interest rates, we doubt they will stop increasing given their focus is on bringing inflation back down to 2%.
The following link is a good read on how it all went wrong for SVB.
Click to read.
Remember, remain invested according to your appetite for volatility and continue to look to buy more quality assets when discounted prices present.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.