With risks rising within the banking sector, investors should get defensive and lean towards large banks over regional institutions, according to Morgan Stanley. Silicon Valley Bank’s collapse , as well as the closure of crypto-focused Signature Bank and Silvergate Capital, all in March, “takes us further away from risks being idiosyncratic,” analyst Betsy Graseck wrote … Read more
There’s speculation the Silicon Valley Bank collapse could expose problems lurking in ETFs tied to specific sectors. Astoria Portfolio Advisors CIO John Davi has financials topping his watch list. “You need to be mindful of your risk,’” Davi, who runs the AXS Astoria Inflation Sensitive ETF, told CNBC’s “ETF Edge” this week. The fund is … Read more
Retail investors are buying financial stocks in unprecedented amounts after the sector’s recent rout, according to Vanda Research. Banks have been pummeled in the wake of Silicon Valley Bank’s collapse and concerns over Credit Suisse ‘s financial situation. Regional bank stocks were particularly hard hit as investors worried whether they had balance sheet issues similar … Read more
A sign for the financial agency Fitch Ratings on a building at the Canary Wharf business and shopping district in London, U.K., on Thursday, March 1, 2012. Bloomberg | Bloomberg | Getty Images Asia-Pacific banks are “resilient to risks” highlighted by failures seen in U.S. banking sector, Fitch Ratings said Thursday, adding the exposure to … Read more
The selloff in regional banks is overdone, with four names looking especially attractive at these levels, according to UBS. While bank stocks moved higher on Thursday, volatility has risen this week. The banking sector began to nosedive shortly before the collapse of Silicon Valley Bank (SVB) and continued this week, despite regulators saying Sunday they … Read more
Credit Suisse (CS) spooked Wall Street on Wednesday after the Swiss bank’s largest backer said it wouldn’t provide more financial support, with the Dow falling more than 700 points at its low. The sell-off, however, made many of the Club’s holdings look more attractive, as investors got defensive and sprinted to the perceived safety of … Read more
“Big Short” investor Danny Moses said the Silicon Valley Bank collapse is exacerbating the economic slowdown despite the government’s actions to mitigate the impact. “You can’t assume that the regulators have any idea what they’re actually dealing with now considering that they were completely caught off guard… by what just happened at Silicon Valley Bank,” … Read more
Allan Baxter | Photolibrary | Getty Images Asia-Pacific’s leading index erased its year-to-date gains and is now flat in 2023 as bank stocks led declines Tuesday. The MSCI Asia Pacific index hit a low of 155.44 in afternoon trade – marking a decline of more than a 9% from its Feb. 2 high of 171.26 … Read more
Evercore ISI is comparing the bank stress to another critical time on Wall Street: The year of the savings and loan crisis and epic crash. “To think you would see financial stress of this kind develop in the system 24 hours after [Fed] chair Powell suggested he may go 50 [basis points] on the 22nd, … Read more
More from Ask an Advisor Here are more FA Council perspectives on how to navigate this economy while building wealth. After some brutal market results in December, a few clients wanted to pull the plug and jump out of the market, according to Stacy Francis, a certified financial planner and president and CEO of Francis … Read more