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Silicon Valley Bank

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Market Content, Optimism

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.

 

With optimism,

 

Dustin Brumbaugh, CIO

Peter Jacobs, Senior Portfolio Manager

Important Disclosures
The content of this article is provided for general information purposes only and is presented solely as our opinion. The information was compiled from sources that we believe to be reliable, however, we cannot guarantee its accuracy, completeness, or timeliness. This article is based on the information available to us as of the date of this article and may change at any time.
Tschetter Group (“TG”) is a registered investment adviser with the Securities and Exchange Commission. The information provided by TG (or any portion thereof) may not be copied or distributed without TG’s prior written approval. All statements are current as of the date written and does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. Different types of investments involve varying degrees of risk. Risk Disclosure Statement: All investments include a risk of loss that clients should be prepared to bear.
Sources: Silicon Valley Bank, Charles Schwab, FDIC, Tschetter Group

Throughout my entire career, I’ve been researching investments and managing portfolios, which is a passion, but the real joy for me is connecting that expertise and experience with clients through lifelong relationships. In other words, it’s the “why” and the “who” that turn my crank, not the “what.” Life is most fulfilling when I spend my time and energy in a way that is aligned with what and whom I love. I’m grateful to have that alignment in my work.