Week of March 13, 2023
The dramatic and rapid failure of Silicon Valley Bank (SVB) last week focused attention on the Fed’s restrictive monetary policy with an understanding that a casualty of this nature was not unexpected. It would appear that the Fed will continue to maintain its inflation fighting posture while simultaneously throwing a lifeline to SVB (and other impaired) depositors. Shareholders in SVB were appropriately wiped out. Our Signals remain unchanged.
Bob Bilkie, CFA