Late Sunday afternoon the Treasury, Federal Deposit Insurance Corporation, and Federal Reserve took extraordinary measures to protect bank depositors around the country. The action was precipitated by an equally extraordinary failure in risk management at California-based, Silicon Valley Bank (SVB). Below we explain a few reasons why Silicon Valley was particularly at risk and why yesterday’s regulatory actions were taken.
As we reflect on 2022 and plan for the new year, there is no shortage of bad news. The traditional stock and bond balanced portfolio had its second worst year on record thanks to the combination of the largest ever annual declines in bond prices and the most significant losses for stocks since 2008.
It is not too late to consider tax planning moves that may lower taxes for the 2022 tax year and possibly position you for savings in the years ahead. While tax planning is a never-ending endeavor, important deadlines are approaching for many strategies that could benefit you in 2022.
With the end of the year quickly approaching, we want to share some reminders on planning opportunities and recommended deadlines to ensure we can help you accomplish your goals before the close of the year.
When it comes to retiree health insurance, it can be overwhelming to understand when to enroll, options under each plan, costs, and what plan best fits your needs. This overview highlights options to consider as you approach retirement.
The passing of the resilient and remarkably dutiful Queen Elizabeth II represented the end of a long era. Few Britons have lived under another monarch. The affection for the Queen was apparent from the British response, including a nearly five-mile “queue” of citizens waiting to pay their respects. Similarly, tens of millions in the United States were drawn to the funeral coverage. We’ve been through a lot with our friends across the pond. We also respect people who are rigidly resolute in keeping the commitments they make.
The upcoming 4th of July holiday is a welcome mid-year respite. For investors, the “Rapidly Shifting Investment Landscape” we discussed in our May intra-quarter commentary is now a much-changed investment landscape. Not only did stocks decline for nine consecutive weeks, bonds had the worst year ever in just half a year’s time. The rare occurrence of stocks and bonds declining in tandem was a one-two punch, particularly for investors who had capitulated to the idea that rates would remain low forever and thus owned intermediate and long duration bonds.
Our normal pattern is to issue a quarterly market commentary. In periods of heightened market volatility, however, we strive to communicate more frequently. For instance, amidst the onset of the pandemic from March 4th to April 2nd of 2020, we issued four market commentaries.
Given the equity market’s declines and the bond market’s historic losses, we want to offer some perspectives regarding the financial markets’ shifting landscape. Suffice it to say, while we seem to have moved beyond the health-related confines of the pandemic, higher interest rates and Russia’s war with Ukraine have quickly squashed investors’ appetite for risk assets. Consistent with our approach for more than two decades, we won’t pretend to know how markets will fare in the near-term. We will, however, reiterate our view that when asset prices go lower, the risks to investors are reduced not increased. Consequently, for investors with a long-term time horizon, we are more likely to buy versus sell stocks amidst the current volatility.
The Ukrainians’ incredible fortitude in the face of Russia’s invasion and merciless tactics has inspired the world. NATO has a renewed purpose, economic sanctions have been swift and arguably more severe than imagined just a few months ago, and the corporate exit from Russia has helped lift the information veil. After all, it’s one thing for an uninformed Russian citizen to make note of the volatility of the Russian Ruble, but quite another when the doors of prominent global retail outlets are literally closed overnight.
