The Federal Reserve raised interest rates and raised them fast. That meant that a lot of people who had money in the Silicon Valley bank were receiving very little for it. So they decided to take it out, put it someplace where it made 5%. And boom, Silicon Valley Bank is sitting there going, uh, whoa.
The recent collapse of Silicon Valley Bank exposed some major cracks in the way that banks have been doing business, and the upheaval is sending shockwaves far beyond the tech sector.
Unwise decisions from leadership compounded by market uncertainty and rising interest rates is certainly a recipe for disaster. How can we analyze these and other warning signs, like an over-reliance on a volatile tech sector, to anticipate and avoid future losses?
Join Phil and Danielle for a postmortem of SVB and a discussion of how its failure could impact value investors.
If you need help identifying warning signs of impending crashes, download your free copy of Your Ultimate Stock Market Crash Survival Guide: https://bit.ly/3YLope0
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