Silicon Valley Bank: Never just one cockroach

Silicon Valley Bank: Never just one cockroach

Disclaimer: Your capital is at risk. This is not investment advice.

AAA: Flash Note;

With the pace and rapidity with which the Fed has been tightening – all the while peddling the “soft landing” narrative – something was bound to break. And it finally has. Last week we saw Silicon Valley Bank shut down by regulators in the second-largest bank failure in US history − after the 2008 collapse of Washington Mutual.

In light of the current market conditions, we have rerun the AAA Model to determine how much the asset rankings have been impacted. The results, shown in the Appendix of this Flash note, reveal that there have been some significant shifts.

We advocate holding more cash at the moment: the trend strength of the strongest assets is weak. Keep in mind that the current crisis and bear market is ongoing, and the situation remains fluid. Remember, by taking a cautious approach and being prepared for different scenarios, investors can navigate these challenging times more effectively and protect their investments in the long run.

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