Mike Earl, CFP®, CPWA®
What makes this failure of Silicon Valley Bank so breathtaking is the speed at which it occurred. With technology enabling faster money movements than ever, banks can see massive outflows in a short period of time, making the timeline from solvency to collapse a short one.
A summary of what happened at SVB, via Ryan Detrick:
While a novel could be written on SVB and Signature Bank (and we’re sure Netflix is already working on the docuseries), our message to clients remains the same as it is during every crisis – be it large or small: stay the course. Focus on following your own personal, long-term, patient financial plan that we have built out for you and with you.
In markets and investing, it is said that stocks “climb a wall of worry.” There are always reasons to worry about the market and economy. And yet stocks climb (go up) over that wall of ever-present worry.
Every time in history that US stocks have “lost” a lot of money, they have eventually recovered to new all-time highs. We won’t bet against that historical precedent of human ingenuity and progress.
Your team of advisors here at TWG stands at the ready to walk alongside you as we collectively focus on decades, not days.
For a deeper dive into what happened at Silicon Valley Bank, we commend this article from Ryan Detrick.