From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
You never would have guessed that two of the three major US stock market indices would post gains this past week (i.e., DJIA: -0.16%, S&P 500: +1.43%, Nasdaq: +4.41%) with what occurred in Silicon Valley Bank, Signature Bank, and the broader banking sector! Mega-cap tech names like Microsoft, Apple, and Google led the charge as a flight to safety trade. During the week, the rate on the two-year US Treasury plunged from 5.05% to 3.85%, the largest drop since 1982. Northern Trust’s commentary on last week’s banking woes provides some perspective.
Volatility of this nature is like riding a roller coaster — or the thrills and chills of college basketball’s March Madness! On the heels of fighting inflation, the Federal Reserve meets this coming Wednesday to determine its priorities and the impact on the US economy. For roughly the past year, interest rates have been climbing to slow the economy. However, nothing can shatter people’s desire to spend like a near-death bank-failure experience. Maybe that’s the elixir the Fed requires to pause further interest rate hikes. Take a look at Schwab’s “Ups and Downs” commentary below.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Alta Capital Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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