Interest Rate Fantasies & The Silicon Valley Bank Failure
The Money Wise guys are back in the studio for another rapid-fire market update. Last week’s numbers from Wall Street showed the Dow down 4.4%, the S&P 500 down 4.5%, and the NASDAQ down 4.7%. Year-to-date, the Dow is down 3.7%, the S&P 500 is up 0.6%, and the NASDAQ is up 6.4%. There’s a lot to unpack in this week’s show and the guys start with the Fed Chairman’s more hawkish statements and how they dashed interest rate fantasies. The Money Wise guys discuss data dependency and elaborate on how the market reacted – and why they aren’t surprised that rates won’t be cut any time soon. The guys also dig into the Silicon Valley Bank failure, how it happened, how it changed the market, and much more.
Silicon Valley Bank Failure in Brief
It all started with a press release last Thursday, in which Silicon Valley Bank (SIVB) said it was issuing more shares of stock. This has the impact of diluting existing shareholders but doesn’t in itself lead to a bank failure. However, by Friday, regulators had taken over and it was clear that the Silicon Valley Bank failure was happening. The Money Wise guys discuss how a huge investment in long-term Treasury instruments spelled the beginning of the end, what the Silicon Valley Bank failure meant for those it served, how the federal government stepped in to protect depositors, and more.
Check out this PBS article on the Silicon Valley Bank failure for more.
In the second hour, the Money Wise guys are discussing Five Things Every Retirement Portfolio Should Have. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.