3 Financials On My Watchlist After Silicon Valley Bank's Detonation

BeanKounter Capital
5.24K Followers

Summary

  • Silicon Valley Bank imploded last week, leaving investors wondering what will happen to the financial system in coming weeks.
  • My knee jerk reaction is that the bank failure doesn't represent systemic risk, but I'm waiting to see more information before I come to any firm conclusions.
  • The government is stepping into bail out the parties involved (moral hazard anyone?), but its just another example of privatizing profits and socializing losses.
  • I highlight three stocks on my watchlist if the events at Silicon Valley Bank cause a selloff in the financial sector.
Silicon Valley Bank Shut Down By Regulators

Justin Sullivan

The biggest news in the markets from last week was the collapse of Silicon Valley Bank (SIVB). The bank was known as a Venture Capital and startup bank, which worked fine as the unprofitable tech bubble was inflating. Deposits basically tripled

This article was written by

5.24K Followers
You can find me on Substack at Kontrarian Korner: CPA and former Big 4 auditor. I break down investments in qualitative and quantitative terms, and I look for investments that will compound my money over the long term.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TROW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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