Good morning! Many of you likely saw news over the weekend around the failure of Silicon Valley Bank (SVB). This is a good example of when the media noise gets turned up loud and we must keep cool-headed in our assessment and response. First and foremost, we want you to rest assured that we have an eye on these developments and will be in good touch if anything needs your attention.
We also want to reassure you that our individual stock portfolios at Tschetter Group have no direct exposure to SVB. The good news is that federal bank regulators have been swift in their response to the SVB failure, providing liquidity for 100% of the bank’s depositors. This is important because it shores up confidence and should bring calm to deposit holders at other banks to avoid similar “runs on the bank” with depositors withdrawing funds. This is good, because we see the main potential impact on our portfolios as indirect volatility if market fears are stoked.
Our main messages to friends and clients of Tschetter Group:
- You will likely see/hear news of this EVERYWHERE. Let us help filter the noise.
- We believe our portfolio strategies are sound. In our view, we own good companies and real estate that should bring comfort in the midst of any temporary market volatility.
- We are here if you have questions/concerns. Whether you’re a client or friend of the firm, we welcome your call.
We’ll stay in good touch if and as needed. For those wanting more details, our investment team has put together the attached FAQ.
Dustin Brumbaugh, CIO
Peter Jacobs, Senior Portfolio Manager