March 2023 has been a significant month for banks in the US and globally. On March 10th, Silicon Valley Bank (SIVB) succumbed to a phenomenon called a “bank run” resulting in the largest failure of a US bank since the 2008 global financial crisis.
With the announcement of the 2nd and 3rd largest bank failures in US history this weekend, it has felt a bit like Oscar-winning “Everything Everywhere All at Once.” Let us cover a few points that will hopefully help you see that this is not the 2008 crisis all over again and calm any concerns you have about the markets or your money.
We believe market prices quickly incorporate information and expectations. The challenge of trying to outguess the markets based on macroeconomic indicators can come at the substantial opportunity cost of missing out on market premiums when they arise.
Here's our take on what happened in the markets in 2022, and how a long-term plan can help you regardless of what happens in 2023.
As we start 2023, let’s remember the lessons of the past three years. Let’s develop—and stick to—plans that take us through the short-term ups and downs of market fluctuations so we can capture the long-term benefits of human ingenuity.
While uncharted territory may test our investment fortitude in the heat of the moment, it's important to have a set of principles to refer to in these uncomfortable times.