Bank regulators were caught off guard last week as three banks failed. First Silvergate Capital, then Silicon Valley Bank (SVB) on Friday, and Signature Bank over the weekend. Bank failures are rare. Yet, it should not be a surprise when a weak link in the chain breaks as monetary conditions tighten via higher interest rates and minimal money supply growth. History shows that leveraged situations become strained when financing costs rise and economic conditions slow. That is our present situation – slowing economic growth due to fast rising interest rates to fight high inflation.
Monthly Archives: March 2023
“Buying USA” – March Commentary
Buying USA
This commentary offers three ideas with a common theme centered on valuation. We monitor various economic, market and political research to understand the current financial market backdrop. We hope these topical writings share our thinking about investing in today’s environment.