marchmeena29
We are in full-blown crisis mode in the United States, and the world is seeing it. Given the failures of Silvergate (SI), Silicon Valley (SIVB), Signature (SBNY) and Credit Suisse (CS)) is now acquired by UBS (UBSMore) within European countries.
This is not just a US problem. The COVID-19 pandemic was truly a global problem. Contagion, as they call it, is everywhere. That happens when trillions of dollars of money are released to the public, recipients deposit it in banks, and bankers invest it. Invest in long-term, low-yield assets.
Another financial crisis?
Is 2008 over yet? These are comments we have received from friends, family and even colleagues.
Yes, these are the first bank failures since the 2008 financial crisis. There is no doubt about that.bankrupt bank Last week was largely niche-based – pulling out the red carpet for cryptocurrencies and startups/venture capital firms.
But the trickle effect exists/must exist and I believe we haven’t seen it yet, similar to the Fed raising interest rates. In practice, we won’t know the impact until weeks or months pass.
Now, over the weekend, Credit Suisse has been acquired by UBS Financial, creating a powerhouse as UBS can also buy penny assets for dollars.
New York Community Bank.they now Spend $2.7 billion on $34.8 billion in assets, to cooperate with the 40 branches of Signature Bank, a bank that went bankrupt on Sunday, March 12. Again, another large bank is being created from the ashes of poor investment and fear/lack of confidence in the banking system.
Have consumers lost faith in the banking system? JPMorgan (JPM), Citi (C), Bank of America (BAC), Goldman (GS) We’re trying to keep them alive with $30 billion in deposits.
In my opinion, this was a bright move to instill confidence in the system, but I’m not sure consumers are still in full force.
keep investing and buy assets
Do you have fear? Certainly there is. A little worried about the future of the global economy? You’re lying if you don’t say yes. That said, I’m less stressed. I can’t get into my emotions.
Don’t let fear consume you. I have no doubt about it.
The stock market has fallen in 2022, but it is rare for the overall stock market to fall two years in a row. However, the last post-financial crisis years are:
Can we expect the same? perhaps. One thing is for sure, we will never go against historical averages or against the US economy.
Stock markets are still up year-to-date in 2023 despite the banking crisis/economic turmoil. So it’s doing what history says is normal, a big drop in 2022 followed by an uptick.
Does it stick? There are future rate hikes and there is a possibility of future bank failures. Fortunately, when it comes to asset prices, this could be a moment we won’t see in the next decade.
Therefore, diplomats continue to buy dividend stocks that are on sale. Burt is buying shares in local banks and investing more in Dividend Aristocrats.
Lanny is shopping with him Trifecta Vanguard ETF Investment Strategy, VYM, VOO, and VIG. He also buys stocks of dividend kings such as Johnson & Johnson (JNJ). TOP 5 FOUNDATION DIVIDEND STOCKas well as other strains such as Hormel (HRL).
The key focus here is to turn off the noise and keep buying assets. Save money and keep investing in undervalued assets.
Conclusion: banking crisis
So the key takeaways from this short article are:
- America is resilient in times of crisis. Look back recently like COVID (which is why we are in this kind of turmoil), the financial crisis, the tech explosion. The question is when the rebound will occur.
- Turn off the noise and continue buying assets as you did in 2020, 2021 and 2022. There is no need to change that strategy for 2023.
- Expect the unexpected. There are many outcomes and scenarios that can arise from the type of crisis that is happening now. You can’t predict what will happen. Work with what you know and invest with what you have!
How are you investing during this time? What stocks are you currently buying or are you on the sidelines? Where is your confidence level right now? Share in the comments below!
As always, good luck and happy investing! Thank you for visiting us.
Editor’s note: The summary bullet points for this article were chosen by the editors of Seeking Alpha.
