As a former banker, I find it really odd that these bankers were ignoring the interest rates, ignoring the markets, etc. Usually when a bank screws up this badly, it's because the management did something risky in order to make tons of cash for themselves. But in this case, management was making investments that didn't even keep up with normal inflation. It's almost like they wanted the bank to fail and use it as a tax write off. What they did wasn't risky. It was just plain lazy.
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
My wife and I were headed in the same direction while making financial decisions. Over the last couple of years, I withdrew my funds and entrusted them to her wealth manager for investment. While I might not achieve the same long-term gains as her, I am at least making a higher return.
@@MarkFreeman-xi3rk Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us..
Through my wife, I got in touch with Margaret Johnson Arndt, and I sent her an email. She is guiding me. She has since supplied me with opportunities to buy and sell the securities in which I am interested. You can hunt her up online if you require care supervision.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent...!!
It is unlikely that the market will experience big gains anytime soon in light of the latest developments involving SVB, therefore it is prudent to set reasonable expectations and get ready for a potentially protracted recovery period. It is advised to postpone making big investment decisions until the economic climate in areas of concern has stabilized. It is best to take precautions and stay out of the current disturbance.
The regional bank ETF (KRE), which has fallen more than 20%, has clearly felt the effects of the SVB and SI problems. The market as a whole has fallen as a result of this cascading effect. Yet, as history has demonstrated, a localized and limited epidemic like this offers a perfect chance to invest in reliable and fiscally sound businesses who have sizable cash reserves on hand.
A continuous commitment to renowned businesses necessitates either maintaining momentum through market downturns or stepping up investments. This approach is predicated on the fundamental idea that successfully managed businesses would eventually regain their previous strength. On the other hand, investors looking to make long-term gains through stock appreciation should consult an FA for advice on how to choose the best times to enter and exit the market. Working with an investing advisor can be beneficial, as demonstrated by my own experience during the pandemic, which led to a size-able gain of $730k in just 8 months.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
I agree, that's the more reason I prefer my day to day invt decisions being guided by a invt-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a invt-coach for over 2years+ and I've netted over 1.5million
The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty.
The downfall of SVB has had a significant impact on the global financial markets, leading investors to hastily sell off bank stocks and revise their interest rate projections. As an investor with a portfolio of $350k, I am now at a critical juncture, questioning the wisdom of holding onto depreciating stocks. In this bearish market, I am seeking advice on the best strategies to maximize my returns.
@Jefzelif thanks for sharing this, I googled the lady you mentioned and after going through her resume, I can tell she's a pro. I wrote her and I'm waiting on her reply
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
@@stephaniestella213 Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
@Zahair O'Brian The adviser I'm in touch with is 'HEATHER ANN CHRISTENSEN, she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.
A powerful coincidence is preparing in the US. Expansion, bank breakdown, serious dry season in the horticultural belt, downturn, real estate market decline, bank emergency, food deficiencies, diesel fuel and warming oil deficiencies, child recipe deficiencies, accessible car deficiencies and costs, the cost of residing place. It's all approaching together and it could prompt a genuine calamity towards the finish of this current year (or sooner). With expansion at present at around 6%, my essential concern is the way to expand my reserve funds/retirement asset of about $300k which has been exposed target since perpetually with zero to no increases.
@Sandra Verheylesonne That is noteworthy! I could truly utilize the skill of this counselor, my portfolio has been stagnant.... Who's the individual directing you?
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
@@HarrietBemish Christine Jane Mclean, a well-known person in her field, is my advisor. I advise doing more study on her credentials. She is a great resource for anyone looking to understand the financial market because of her extensive experience.
@@philipr1759 Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
Just like the economist magazine, this video was perhaps the most concise and informative explanation of the Silicon Valley Bank bankruptcy that I have ever seen. I would probably need to consume 20 minutes of video footage from any other source in order to get even close to what I got from this four minute video by the economist. Well done!
After the 2008 financial crisis, all the major western democracies have implemented the recommendation of the Basel Framework for Banks, with the notable exception of the United States. The Basel Framework for Banks was implemented only for the major American banks. The smaller banks and regional banks were exempted (including SVB) because they lobbied hard and Congress bowed, they were excluded from the Basel Framework. One of the purposes of the Basel Framework is to improve the risk management.
reporter forgot to mention those banks bought mortgage securities out of greed for higher yield in an inflationary-rising interest environment everyone knew was coming with the onset of ukr war.
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfoIio, what’s the best way to take advantage of this bear market?
The Collapse of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfolio, what’s the best way to take advantage of this bear market?
Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $480k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@edward.abraham My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@@Kim.beneteau Julia Ann Finnicum, a well-known person in her field, is my advisor. I advise doing more study on her credentials. She is a great resource for anyone looking to understand the financial market because of her extensive experience.
@@edward.abraham Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted Julia's full name into my browser, and her website came up.
They failed because the CEO and C-Suite Executives were extremely unqualified and should never have been in banking. Nobody that understands banking ignores the duration risk especially if they are highly exposed to long duration in a rising interest rate environment. The fact the CFO stated in their January Investor call that they had little exposure because the investments were HTM instead of AFS shows how unqualified these C-Suite executives were and should never be in charge of a financial institution of any kind.
id like to see some qualified rich people. unless they struggle for years at the bottom of society, they have no insight or anything to offer the world. its almost like people hire the laziest most selfish people for the highest positions because they do nothing. somehow people even audiences of this channel think being a suited up ceo is cool and that rich people should play golf all day. how is this lifestyle acceptable? its a marketing technique. dumb untalented unambitious people need to also think they should participate.
SVB CEO Becker was on the Board of the local San Francisco branch of the Fed Reserve with close ties to Gov Newsom. SVB believed the guidance of both the Fed and Biden Admin that inflation was "transitory", they made bets on that guidance and panicked when they failed. Full stop.
SVB CEO Becker was on the board of the San Francisco branch of the Federal Reserve who was tasked to oversee SVB and had close personal ties to Governor Newsom and his wife.
what about the years of deregulation by republicans that everyone agrees caused this situation? 2008 was the result of 8 years of republican rule. why is this type of trickle down bullcrap great until it causes the rich to take over and then suddenly its the fault of a democrat. youre pathetic.
These small businesses should only accept a bailout if the entire board and management team reaigns in favor of a temporary govt takeover and auction. these people are greedy incoptent egotistical pigs
I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.
@@Isaacmeide You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst
Isabel Linda Dueri” is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
It was reported elsewhere that bank executives sold their stock the week before the collapse. Is this true? and if so, wonder how other stock holders feel about that (although I can probably guess!)...?!.
Yeah it’s true the CEO legally sold stock after they were audited; I think it was January or February EDIT: He sold his shares in the bank in February after they were audited in January
Back in the days, when I purchased my first home to live in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
SVB is already gone. The management is gone. The FDIC set up a new bank that the FDIC controls, and all of SVB assets were transferred into the new bank. SVB is legally and permanently gone.
@@nuqwestr So HSBC is buying the bank and they will make the uninsured depositors whole? It does not sound that way. It's more like the FDIC is making them whole before they bank is transferred to the HSBC.
FED just set up temp loan program to provide liquidity for banks in similar circumstance, banks can borrow against assets at par value, this will provide a safety valve, but we need to control inflation without a crashing recession, tough to do.
The FDIC insurance has been at 250k since I was a kid…it’s probably time to investigate the insurance company and see why they haven’t kept up with inflation to protect that
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies...i would greatly appreciate any suggestions..
The market is volatile at this time, hence I will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
@@Zubarevich12 I agree! The US-Stock Market had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed t0 such troubled markets, but there are avenues lurking around if you know where t0 look, I’ve netted over $850k in the past 10months....
@@Marquez54 I am guided by Patricia Grace Ellis, I found her on CNBC interview where she was featured and reached out t0 her. She has since provided entry and exit points on the securities I focus on. You can look her up online with her name if you care for supervision.
I feel for the Etsy proprietors who have their business deposits held at Etsy have ZERO insurance and are at the mercy of the company billionaire predator owners. All those new agey serfs on the techno-manorial estate.
What I see; I.Deposit levels V loan book size II. Iliquidity of the bank III. Low level of regulation towards a "smaller" bank that tripled its size in 2 yrs IV unrealized Losses V Social media and "small" VC, start up community sharing about pulling their decision VI management decision about how to apply their deposits. Do you think the measures taken by regulators will set a pecedent to other banks?
I will add that short sellers piled on SVB at the same time word was going around on social media to pull deposits. Apparently some CFO at a startup company got wind of a possible insolvency problem, and word spread among a group of people that essentially controlled a large percentage of SVB deposits. They started the run. Social media finished it off. The whole time, short sellers were setting on the stock like vampires.
SVB CEO Becker was on regulatory board that had oversight on SVB, big problem, but bank only followed Fed and Admin guidance that inflation was "transitory" and made an all in bet on that guidance. FED just put a loan program in place to provide liquidity in similar circumstances. Panic safety valve.
Banks collapsing is getting scary day by day. Its insane how every country is getting hit hard post covid. Questions remain its always the poor and weak that get hit the hardest
It was a private bank hedging on transitory inflation which is a lie. One bank failing while over one hundred thousand are fine… far from a banking system failure.
I didnt understand the fact that as rates rise the value of treasuries and bonds fell causing the bank to loose on their sale. Isnt the point of treasury or bond a fixed positive return , how can it be a loss?
It is not a loss if you hold it until it matures, only if try to sell it early. Which SVB needed to do in order to allow the depositors to suddenly withdraw their money. The management were utterly incompetent as all they had to do was to hedge for interest rate increases - risk management 101.
Read about the "inverted curve" caused by rapid monetary inflation. Fed and admin guidance said inflation "transitory" but it wasn't, and so the panic back to cash. Fed just put in place a loan program which will ease panic. Hope it works.
What really went wrong is that an influential VC called a bank run without need, and people panicked. No bank(!) no matter the oversight and tighting rules can survive an attack like that.
Wrong. The VC were the smart ones and jumped 1st. The C-Suite is 100% responsible for this mess. They failed to roll their positions from long duration to short in a rising interest rate environment. The CFO stated in their January investor call they had minimum exposure to duration risk as the investments were HTM and not AFS. He’s an idiot.
Nobody wanted any, I guess? If they had billions in cash, but no-one needed money to invest in their business, that money is just sat there doing nothing. So they put it in bonds to get some return
Given how this was mostly triggered by the valuation of treasury notes dropping, this doesn't really seem like a "bank taking excessive risk" situation. I am a lot more sympathetic to this situation than what we saw in the financial crisis.
It's my understanding they could have hedged the interest rate risk with derivatives. That would have hurt their bottom line, but they'd still be in business today.
It really is idiotic risk taking = not hedging for interest rate movements is an elementary error for a bank to take, particularly as there was no possibility of them profiting from rates going the other way. I heard one economist describe it as malfeasance.
@@Coherers Agreed, SVB took guidance that inflation was "transitory" and made all in bets that failed, and then they panicked. Fed just created a new loan program for banks to provide temp liquidity for similar circumstance, a 1-year safety value.
There is a lot more to this garbage than we are being told. Now it's time to explain it in a way where they aren't to blame and this administration will bail the rich out.
Can someone explain to me why interest rates lowered the value of the existing T bills they had on their balance sheet? I’m not quite understanding this part.
It’s because the value of high quality assets like treasury securities and mortgage backed securities fall when interest rates rise; since investors don’t prefer the lower fixed interest rate paid by a bond, leading to a decline in its price.
@@mealovesyu You misunderstood the context of my comment. That being said... Your statement is flawed. Look at how many times the government sticks their nose in personal life decisions of everyday people. We can compile a list. Abortion is one of the loudest at the moment. That's my personal life. Is it not.
Banks normally use Interest Rate Swaps to hedge the risk of rising rates. This should not have been a problem that could lead to major losses. The question remains: What really went wrong?
What went wrong: People keep believing bankers have their customers best interest in mind...and that they act with a long-term perspective for their clients rather than a short-term profit for themselves. They don't.
I find it troubling that the Federal Reserve did not know or chose to ignore the concentration of Treasury debt in single bank. We often hear about the extent of Treasury debt holdings by China. If you elect to raise interest rates in order to combat inflation it would seem logical to understand the risk to institutions holding these securities. This is the second failure by the Federal Reserve in this business cycle. They were asleep regarding the inflation consequences of pumping trillions of dollars into the economy while aggregate output flattened or shrunk. Two important lessons of my undergraduate study of economics: 1. You cannot put huge sums money in the hands of those who are producing no output without debasing the currency. 2. When you are late to the party you drink too much, too fast. The Fed has been imbibing excessively to cover its earlier mistakes and now others suffer the hangover. Like so many educational institutions, the Fed seems to be immune to its own knowledge.
The failure of silicon Valley bank has rippled into global markets and made big problems in the rising interest rates hopefully everything will be fixed soon
I've said this once and I will say it again... We live in 2023 folks. If these engineers can't design buildings that won't collapse then they shouldn't be allowed to build them. I can't believe this still happening.
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?
The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor
I agree, having a brokerage advisor for inveesting is genius! Amidst the financial crisis in 2008, I was really having inveesting nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.
@@ryleemacmahon that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. - Henry Ford
What I find interesting is that depositors that left more than $250K (the FDIC insurance limit) deposited in this bank are now crying for the federal government to insure ALL deposits regardless of amount. That's a dangerous precedent to set. As for INVESTORS in the bank, they should take a haircut. That's the risk one assumes when investing.
What really went wrong is the US treasury bond, which is supposed to be the safest asset in the world, is not safe any more. This is going to be a problem for any institutional investor who invested in US treasury bonds.
nonsense, it was about inflation and inverted yield between short and long term bonds. Fed just instituted a loan program for banks in similar situation, so safety valve in place. you are nuts. I'm making money on short-term bonds, even my bank, JP Morgan Chase is doing same, paying out 4% on short-term CDs. You are clueless. Money is racing in from around the world to buy them.
Amazing all the concern about Banks but nowhere near a similar concern for an Economic Contagion from a Student Debt implosion. ... If 'Corp'orations are People, shouldn't People have the same Rights as a 'Corp'oration (i.e. essentially, a Bureaucracy) - that, it is, ultimately, intended to serve. "The People" are not even allowed the Right of 'Corp'arations to claim Bankruptcy from the Debt -- effectively, prevented from fully engaging with and contributing to the larger Economy - incapacitated by a lifelong form of 'Debters Prison!.'
No person or corporation need fear being irresponsible, the taxpayer, from richest to most humble, will be there to make up the losses. It's as if the term Moral Hazard was still waiting to be coined.
As a former banker, I find it really odd that these bankers were ignoring the interest rates, ignoring the markets, etc. Usually when a bank screws up this badly, it's because the management did something risky in order to make tons of cash for themselves. But in this case, management was making investments that didn't even keep up with normal inflation. It's almost like they wanted the bank to fail and use it as a tax write off. What they did wasn't risky. It was just plain lazy.
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
My wife and I were headed in the same direction while making financial decisions. Over the last couple of years, I withdrew my funds and entrusted them to her wealth manager for investment. While I might not achieve the same long-term gains as her, I am at least making a higher return.
@@MarkFreeman-xi3rk Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us..
Through my wife, I got in touch with Margaret Johnson Arndt, and I sent her an email. She is guiding me. She has since supplied me with opportunities to buy and sell the securities in which I am interested. You can hunt her up online if you require care supervision.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent...!!
It is unlikely that the market will experience big gains anytime soon in light of the latest developments involving SVB, therefore it is prudent to set reasonable expectations and get ready for a potentially protracted recovery period. It is advised to postpone making big investment decisions until the economic climate in areas of concern has stabilized. It is best to take precautions and stay out of the current disturbance.
The regional bank ETF (KRE), which has fallen more than 20%, has clearly felt the effects of the SVB and SI problems. The market as a whole has fallen as a result of this cascading effect. Yet, as history has demonstrated, a localized and limited epidemic like this offers a perfect chance to invest in reliable and fiscally sound businesses who have sizable cash reserves on hand.
A continuous commitment to renowned businesses necessitates either maintaining momentum through market downturns or stepping up investments. This approach is predicated on the fundamental idea that successfully managed businesses would eventually regain their previous strength. On the other hand, investors looking to make long-term gains through stock appreciation should consult an FA for advice on how to choose the best times to enter and exit the market. Working with an investing advisor can be beneficial, as demonstrated by my own experience during the pandemic, which led to a size-able gain of $730k in just 8 months.
Could you kindly leave your investment advisor's contact information here? I absolutely must have one.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I've
‹Spot on ! our main focus right now should be on strategies to maneuver our current situation
lots of folks are making millions off this downmarket but such info doesn't make it to the news..
knowing the strategies to apply in this time is one thing and having the right info to successfully pull it off is just another.
I agree, that's the more reason I prefer my day to day invt decisions being guided by a invt-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a invt-coach for over 2years+ and I've netted over 1.5million
@@JurggenDietrich
I guess that's why the demand for investment-advisers sky-rocketed by over
41.8% since the pandemic according to investopedia
The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty.
The downfall of SVB has had a significant impact on the global financial markets, leading investors to hastily sell off bank stocks and revise their interest rate projections. As an investor with a portfolio of $350k, I am now at a critical juncture, questioning the wisdom of holding onto depreciating stocks. In this bearish market, I am seeking advice on the best strategies to maximize my returns.
@Jefzelif Can you kindly provide me with the information of your investment advisor as I am currently in desperate need of one?
@Jefzelif thanks for sharing this, I googled the lady you mentioned and after going through her resume, I can tell she's a pro. I wrote her and I'm waiting on her reply
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
@@stephaniestella213 Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
@Zahair O'Brian The adviser I'm in touch with is 'HEATHER ANN CHRISTENSEN, she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.
I agree
A powerful coincidence is preparing in the US. Expansion, bank breakdown, serious dry season in the horticultural belt, downturn, real estate market decline, bank emergency, food deficiencies, diesel fuel and warming oil deficiencies, child recipe deficiencies, accessible car deficiencies and costs, the cost of residing place. It's all approaching together and it could prompt a genuine calamity towards the finish of this current year (or sooner). With expansion at present at around 6%, my essential concern is the way to expand my reserve funds/retirement asset of about $300k which has been exposed target since perpetually with zero to no increases.
@Sandra Verheylesonne That is noteworthy! I could truly utilize the skill of this counselor, my portfolio has been stagnant.... Who's the individual directing you?
@Sandra Verheylesonne Asking please, how do I get through to him?
Bullshift.
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
@@HarrietBemish Christine Jane Mclean, a well-known person in her field, is my advisor. I advise doing more study on her credentials. She is a great resource for anyone looking to understand the financial market because of her extensive experience.
@@philipr1759 Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
Following your channel from the last two years, interesting and informative content. And more informative than mainstream news.
Just like the economist magazine, this video was perhaps the most concise and informative explanation of the Silicon Valley Bank bankruptcy that I have ever seen. I would probably need to consume 20 minutes of video footage from any other source in order to get even close to what I got from this four minute video by the economist. Well done!
After the 2008 financial crisis, all the major western democracies have implemented the recommendation of the Basel Framework for Banks, with the notable exception of the United States. The Basel Framework for Banks was implemented only for the major American banks.
The smaller banks and regional banks were exempted (including SVB) because they lobbied hard and Congress bowed, they were excluded from the Basel Framework. One of the purposes of the Basel Framework is to improve the risk management.
reporter forgot to mention those banks bought mortgage securities out of greed for higher yield in an inflationary-rising interest environment everyone knew was coming with the onset of ukr war.
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfoIio, what’s the best way to take advantage of this bear market?
The Collapse of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfolio, what’s the best way to take advantage of this bear market?
Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $480k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@edward.abraham My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@@Kim.beneteau Julia Ann Finnicum, a well-known person in her field, is my advisor. I advise doing more study on her credentials. She is a great resource for anyone looking to understand the financial market because of her extensive experience.
@@edward.abraham Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted Julia's full name into my browser, and her website came up.
It is interesting to watch from the sidelines and see how broader the impact will be from this, not just within the USA but globally.
great summary. thanks! 👍🏻
The content of this video is very informative,
Waiting for more explanatory videos
They failed because the CEO and C-Suite Executives were extremely unqualified and should never have been in banking. Nobody that understands banking ignores the duration risk especially if they are highly exposed to long duration in a rising interest rate environment. The fact the CFO stated in their January Investor call that they had little exposure because the investments were HTM instead of AFS shows how unqualified these C-Suite executives were and should never be in charge of a financial institution of any kind.
id like to see some qualified rich people. unless they struggle for years at the bottom of society, they have no insight or anything to offer the world. its almost like people hire the laziest most selfish people for the highest positions because they do nothing. somehow people even audiences of this channel think being a suited up ceo is cool and that rich people should play golf all day. how is this lifestyle acceptable? its a marketing technique. dumb untalented unambitious people need to also think they should participate.
SVB CEO Becker was on the Board of the local San Francisco branch of the Fed Reserve with close ties to Gov Newsom. SVB believed the guidance of both the Fed and Biden Admin that inflation was "transitory", they made bets on that guidance and panicked when they failed. Full stop.
Agreed. Every bond manager in North America was reducing duration and credit risk in 2021-2022 except these guys.
The FED conducts stress tests annually, forget the banks - the FED failed.
Most informative channel I came across. I love watching your videos
Love the info that was provided and was super easy to understand
This is amazing video that I’ve watched it. I like the way they present the information so detail
SVB CEO Becker was on the board of the San Francisco branch of the Federal Reserve who was tasked to oversee SVB and had close personal ties to Governor Newsom and his wife.
what about the years of deregulation by republicans that everyone agrees caused this situation? 2008 was the result of 8 years of republican rule. why is this type of trickle down bullcrap great until it causes the rich to take over and then suddenly its the fault of a democrat. youre pathetic.
Information the key to knowledge and is shared beautifully in a short manner, interesting. 🤘🏻
Great video, I really enjoyed watching it and learned a lot from your insights
The video was very informative and entertaining at the same time. I learned many things.
excellent information with reliable arguments, I like this type of reports with complete and concise information 👍
Thank you, this video was very interesting to see, great news
Very powerful and insightful. Thanks for sharing this video. Cheers
The uninsured deposits shouldn't have been bailed out. It basically tells me to follow the rules unless you're rich.
completely agree
These small businesses should only accept a bailout if the entire board and management team reaigns in favor of a temporary govt takeover and auction. these people are greedy incoptent egotistical pigs
they weren't bailed out, balance sheet purchased by competitors.
@@nuqwestr what you talking about Willis?
They weren’t bailed out
The video is well explained and is quite informative.Great video 👍
Amazing reality of the channel 😊😊
Great content and summary, watch it guys, so we know whats going on out there!!!!
I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.
@@Isaacmeide You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst
wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio, I am so done with banks!
Isabel Linda Dueri” is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
The video is very informative and it ensure that you are understanding of all the major concern with banks and financial system.
Absolutely useful insight on SVB. The tech industry is so complicated.
It was reported elsewhere that bank executives sold their stock the week before the collapse. Is this true? and if so, wonder how other stock holders feel about that (although I can probably guess!)...?!.
Yeah it’s true the CEO legally sold stock after they were audited; I think it was January or February
EDIT: He sold his shares in the bank in February after they were audited in January
Very interesting hearing how all the economic value of each economy relates
This is absolutely an amazing video to watch. It did justice to a lot of information shared.
Great explanation on what happened and what could happen. So interesting
Back in the days, when I purchased my first home to live in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them.
The three pillars of Basel III are market discipline, Supervisory review Process, minimum capital requirement.
Great video very informative really loved it. It was really interesting.
Although none of us want a 2008 repeat, I feel it’s quite irresponsible to salvage SVB.
It ends up fostering a perpetual circle of risk averse banks.
SVB is already gone. The management is gone. The FDIC set up a new bank that the FDIC controls, and all of SVB assets were transferred into the new bank. SVB is legally and permanently gone.
SVB not getting a bailout, it was sold off to competitors who are covering the loss.
@@nuqwestr So HSBC is buying the bank and they will make the uninsured depositors whole? It does not sound that way. It's more like the FDIC is making them whole before they bank is transferred to the HSBC.
@@100perdido HSBC is only buying the small SVB UK subsidiary, not the main SVB entity.
FED just set up temp loan program to provide liquidity for banks in similar circumstance, banks can borrow against assets at par value, this will provide a safety valve, but we need to control inflation without a crashing recession, tough to do.
The FDIC insurance has been at 250k since I was a kid…it’s probably time to investigate the insurance company and see why they haven’t kept up with inflation to protect that
Brilliantly presented, thank you :)
I really like this content, I would recommend alot. Would definitely watch another video!
So, the problem is the lack of reach of the regulatory framework? That's like saying if you have a bigger first aid kit you'll have less accidents.
I believe we are in for a very tough 2-3 years financially!
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies...i would greatly appreciate any suggestions..
The market is volatile at this time, hence I will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
@@Zubarevich12 I agree! The US-Stock Market had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed t0 such troubled markets, but there are avenues lurking around if you know where t0 look, I’ve netted over $850k in the past 10months....
@@YusufEymen248 that's impressive! Who is your broker? I would love to achieve this level of success..
@@Marquez54 I am guided by Patricia Grace Ellis, I found her on CNBC interview where she was featured and reached out t0 her. She has since provided entry and exit points on the securities I focus on. You can look her up online with her name if you care for supervision.
the economy in the world does not stop, one day inflation is up there, the next, down there. very informative video
Interesting the CEO legally sold his shares in the bank in February after the bank had been audited in January I believe.
I feel for the Etsy proprietors who have their business deposits held at Etsy have ZERO insurance and are at the mercy of the company billionaire predator owners. All those new agey serfs on the techno-manorial estate.
What I see;
I.Deposit levels V loan book size
II. Iliquidity of the bank
III. Low level of regulation towards a "smaller" bank that tripled its size in 2 yrs
IV unrealized Losses
V Social media and "small" VC, start up community sharing about pulling their decision
VI management decision about how to apply their deposits.
Do you think the measures taken by regulators will set a pecedent to other banks?
I will add that short sellers piled on SVB at the same time word was going around on social media to pull deposits. Apparently some CFO at a startup company got wind of a possible insolvency problem, and word spread among a group of people that essentially controlled a large percentage of SVB deposits. They started the run. Social media finished it off. The whole time, short sellers were setting on the stock like vampires.
SVB CEO Becker was on regulatory board that had oversight on SVB, big problem, but bank only followed Fed and Admin guidance that inflation was "transitory" and made an all in bet on that guidance. FED just put a loan program in place to provide liquidity in similar circumstances. Panic safety valve.
Banks collapsing is getting scary day by day. Its insane how every country is getting hit hard post covid.
Questions remain its always the poor and weak that get hit the hardest
Deregulation in the banking system has kick us in the 🥜 again.
no, had nothing to do with an all in bet on transitory inflation.
It was a private bank hedging on transitory inflation which is a lie. One bank failing while over one hundred thousand are fine… far from a banking system failure.
It is already shaking banks in Europe, especially in Switzerland, which was considered stable, but this is no longer the case
Your British compatriot, Patrick Boyle, spent 26 minutes on this topic, just recently!
His presentation was the very best of all the ones I have watched.
@@rtqii and his dry straight-faced humour🤣
It is my opinion that it would be easy to defer any significant investment decisions until the economic environment stabilizes in areas of concern.
I didnt understand the fact that as rates rise the value of treasuries and bonds fell causing the bank to loose on their sale. Isnt the point of treasury or bond a fixed positive return , how can it be a loss?
Only if you hold it to maturity, not on a mark-to-market basis
It is not a loss if you hold it until it matures, only if try to sell it early. Which SVB needed to do in order to allow the depositors to suddenly withdraw their money. The management were utterly incompetent as all they had to do was to hedge for interest rate increases - risk management 101.
Read about the "inverted curve" caused by rapid monetary inflation. Fed and admin guidance said inflation "transitory" but it wasn't, and so the panic back to cash. Fed just put in place a loan program which will ease panic. Hope it works.
I am still trying to figure out what actually happened and could not get an answer which is absolutely accurate.
What really went wrong is that an influential VC called a bank run without need, and people panicked. No bank(!) no matter the oversight and tighting rules can survive an attack like that.
Wrong. The VC were the smart ones and jumped 1st. The C-Suite is 100% responsible for this mess. They failed to roll their positions from long duration to short in a rising interest rate environment. The CFO stated in their January investor call they had minimum exposure to duration risk as the investments were HTM and not AFS. He’s an idiot.
FED just put in place a temp loan program for banks in similar situation, safety value in place for those who panic.
Can someone explain to me like I’m 5 why SVB was “struggling to make loans” to their commercial customers? Thanks
Nobody wanted any, I guess? If they had billions in cash, but no-one needed money to invest in their business, that money is just sat there doing nothing. So they put it in bonds to get some return
How much of a part was played by shorting?
I thought it was only insured for 250k, that’s socialism that they weren’t being the normal coverage
Given how this was mostly triggered by the valuation of treasury notes dropping, this doesn't really seem like a "bank taking excessive risk" situation. I am a lot more sympathetic to this situation than what we saw in the financial crisis.
It's my understanding they could have hedged the interest rate risk with derivatives. That would have hurt their bottom line, but they'd still be in business today.
It really is idiotic risk taking = not hedging for interest rate movements is an elementary error for a bank to take, particularly as there was no possibility of them profiting from rates going the other way. I heard one economist describe it as malfeasance.
@@Coherers Agreed, SVB took guidance that inflation was "transitory" and made all in bets that failed, and then they panicked. Fed just created a new loan program for banks to provide temp liquidity for similar circumstance, a 1-year safety value.
These people are financial experts. They shouldn't need you to make excuses for them.
There is a lot more to this garbage than we are being told. Now it's time to explain it in a way where they aren't to blame and this administration will bail the rich out.
Can someone explain to me why interest rates lowered the value of the existing T bills they had on their balance sheet? I’m not quite understanding this part.
It’s because the value of high quality assets like treasury securities and mortgage backed securities fall when interest rates rise; since investors don’t prefer the lower fixed interest rate paid by a bond, leading to a decline in its price.
can someone please explain to me how selling HTM securities can lead to a need for capital raise?
Financial crisis Alarming situation
I wish the government was half as concerned about my missteps in life as they are with corporate missteps.
Government isn’t responsible for your personal life decisions. These corporate decisions affect everyone on a macro level.
@@mealovesyu You misunderstood the context of my comment. That being said... Your statement is flawed. Look at how many times the government sticks their nose in personal life decisions of everyday people. We can compile a list. Abortion is one of the loudest at the moment. That's my personal life. Is it not.
@@PluckMe Nope
Banks normally use Interest Rate Swaps to hedge the risk of rising rates. This should not have been a problem that could lead to major losses. The question remains: What really went wrong?
What went wrong: People keep believing bankers have their customers best interest in mind...and that they act with a long-term perspective for their clients rather than a short-term profit for themselves. They don't.
I find it troubling that the Federal Reserve did not know or chose to ignore the concentration of Treasury debt in single bank. We often hear about the extent of Treasury debt holdings by China. If you elect to raise interest rates in order to combat inflation it would seem logical to understand the risk to institutions holding these securities. This is the second failure by the Federal Reserve in this business cycle. They were asleep regarding the inflation consequences of pumping trillions of dollars into the economy while aggregate output flattened or shrunk. Two important lessons of my undergraduate study of economics:
1. You cannot put huge sums money in the hands of those who are producing no output without debasing the currency.
2. When you are late to the party you drink too much, too fast. The Fed has been imbibing excessively to cover its earlier mistakes and now others suffer the hangover.
Like so many educational institutions, the Fed seems to be immune to its own knowledge.
I havent gotten paid yet since the news! yall better fix this 😒😒
The failure of silicon Valley bank has rippled into global markets and made big problems in the rising interest rates hopefully everything will be fixed soon
I've said this once and I will say it again... We live in 2023 folks. If these engineers can't design buildings that won't collapse then they shouldn't be allowed to build them. I can't believe this still happening.
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?
The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor
I agree, having a brokerage advisor for inveesting is genius! Amidst the financial crisis in 2008, I was really having inveesting nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.
that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
@@ryleemacmahon that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
@@hothiphong credits to DEBORAH DIVITO WELCH, one of the best portfolio manager;s out there. she;s well known, you should look her up
So when the bank collapsed, people where able to keep all the assets and still be on top
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
- Henry Ford
What I find interesting is that depositors that left more than $250K (the FDIC insurance limit) deposited in this bank are now crying for the federal government to insure ALL deposits regardless of amount. That's a dangerous precedent to set. As for INVESTORS in the bank, they should take a haircut. That's the risk one assumes when investing.
What really went wrong is the US treasury bond, which is supposed to be the safest asset in the world, is not safe any more. This is going to be a problem for any institutional investor who invested in US treasury bonds.
nonsense, it was about inflation and inverted yield between short and long term bonds. Fed just instituted a loan program for banks in similar situation, so safety valve in place. you are nuts. I'm making money on short-term bonds, even my bank, JP Morgan Chase is doing same, paying out 4% on short-term CDs. You are clueless. Money is racing in from around the world to buy them.
three letters: ESG
Bro imagine working for Silicon Valley it would be really stressful
The profit is mine, the debts is ours. Government saving banks ...
A top 20 best bank they said.....
Is this a way to destroy all the money that was created after the pandemic to avoid inflation?
I had no idea that banks could have debt…
As soon as you deposit money, that bank has a debt to you.
Signature didn't fail which is why you are not going into any details. It was shut down because of its crypto friendly practices.
High risk customers and putting your eggs all in one basket is always a bad idea
Amazing all the concern about Banks
but nowhere near a similar concern for
an Economic Contagion from a Student
Debt implosion. ... If 'Corp'orations are
People, shouldn't People have the same
Rights as a 'Corp'oration (i.e. essentially,
a Bureaucracy) - that, it is, ultimately,
intended to serve. "The People" are not
even allowed the Right of 'Corp'arations
to claim Bankruptcy from the Debt --
effectively, prevented from fully engaging
with and contributing to the larger
Economy - incapacitated by a lifelong form
of 'Debters Prison!.'
one time student debt cycle is neither a contagion or can be compared to the effect of inflation on bond yields. you don't have a clue.
These are the culprit - The bank execs, the banking system, the reduce regulation, and inside job trading
bank are the one who are making big profit out of this inflation
This is just another time when the people in power get away with making bad decisions without penalty
Surprise surprise special rules and bailouts, no one else to blame for the financial prices
inrease bank liqudiity while reducing bank leverage!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
gary gensler SEC get the jail cells ready
I don’t understand why SVB bought Treasury and mortgage backed securities, can someone explain?
It's temporary solution, bring intrest rate down and control inflation otherwise next week another bank collapse. 😢
We shouldn't put all of our trust in the banks
My life is totally changed because I've been earning $15,250 returns from my $4,000 investment with Isabella
Give it another 2 weeks.. Things will be fine.. 🙄🙄🙄
No person or corporation need fear being irresponsible, the taxpayer, from richest to most humble, will be there to make up the losses. It's as if the term Moral Hazard was still waiting to be coined.
Banks collapse. Stock Exchanges persist.
The money is stolen and last choice print more money