Banking Crisis Update
Modern-Day “Bank Run” If you have been following financial news headlines, last week Silicon Valley Bank, one of the 20 largest banks in the country, had a run on assets, causing it to become insolvent and taken over by bank regulators. How did this happen and what does it mean to you? Let’s take a deeper dive which will hopefully answer some of your questions. What Happened? On Friday, March 10, Silicon Valley Bank, the bank to some of the biggest names in Big Tech, became the largest bank to fail since the financial crisis of 2008. Silicon Valley Bank provided banking...
Read MoreEQM Capital 4Q 2022 Market Review and Outlook – Will 2023 Be the Antidote to the Trifecta of Pain?
Most investors are happy to get 2022 behind them, as the S&P 500 Index experienced its worst year since 2008’s financial crisis, down 18.1% on a total return basis. High-growth tech stocks fared even worse, with the NASDAQ Composite experiencing a 32.5% decline and Small Cap Russell 2000 stocks were down 20.4%. There were a few places to hide in the stock market. The Dow Jones Industrial Index was down only 6.9% and the Energy sector, helped by a spike in prices exacerbated by the Russia-Ukraine conflict, was a top-performing sector with the Energy Select SPDR Fund (XLE) up a whopping...
Read MoreEQM Capital 3Q 2022 Market Review – Markets Are Stuck on Hold
The S&P 500 Index fell its third consecutive quarter for the first time since the global financial crisis more than a decade ago. Last year the Fed believed that inflation was “transitory”, but that has proven not to be the case.
Read MoreEQM Capital 2Q 2022 Market Review – Don’t Be Too Blue
Source: Adobe Images The U.S stock market ended the quarter officially in bear market territory, down more than 20% for the year. While there have been multiple factors causing the market to experience its worst first half of the year, since 1970, the cause can be really be synthesized into one word: inflation. In order to curb runaway inflation, the Fed has been aggressively raising interest rates, playing catchup with 1.5% worth of rate increases, with more to come. The supply chain constraints the Fed thought would be “transitory” and ease, proved to be longer-lasting, exacerbated by the...
Read MoreEQM Capital 1Q 2022 Market Review – Optimists vs. Pessimists
Source: Adobe Images During the first quarter, U.S. stock markets recorded their first quarterly loss in two years and the U.S. bond market suffered its worst quarter in 40 years. The start of the Federal Reserve’s interest rate hiking cycle, persistently high inflation, and the Russian invasion of Ukraine, combined, creating a volatile quarter for both stocks and bonds. The Fed Becomes Hawkish The Federal Reserve has gone from remaining stubbornly dovish last year and claiming that inflation was “transitory” to feeling they are now behind the curve in combatting it. After...
Read More
