Dramatic exit: When the curtain falls
March 16, 2023
It’s been a heavy week in financial news. If you’re feeling uncertain about what comes next, you’re not alone. We’ve gathered a few thoughts on the current state of the market, but an important takeaway is that making big swerves to your investment portfolio can have implications for years down the road. Stay calm and stick to your strategy — and know that we’re riding this out together. |
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Update on the Silicon Valley Bank failure: Early this week, the government confirmed it would fully back depositors of Silicon Valley Bank beyond the initial $250,000 guaranteed amount. The money will come from the FDIC deposit insurance fund and will not use taxpayer funds. Seeing the light: Did we turn our clocks ahead for the last time? A bill in the Senate proposes ending the practice of Daylight Saving Time.* Adding an extra hour of sunlight could have its benefits — studies find economic activity drops 3.5%* when clocks are turned back in the fall. Another last call: Citing falling ticket sales* that have plagued many Broadway favorites since the onset of the pandemic, "The Phantom of the Opera" will close on April 16.* If you’re looking to book a last-minute trip before the show’s 35-year run ends, here are a few tips for traveling on a budget. |
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Mixed signals There was already a lot of buzz around the U.S. jobs report, a key inflation indicator — and that was before it released on the same day as the largest bank failure since 2008.With job growth exceeding expectations* (last month the U.S. added 311,000 jobs versus the predicted 205,000) and inflation continuing to rise* (the Consumer Price Index was up 6% in February), the Fed’s campaign to combat inflation just got more complicated. Many point to rising rates as a key factor in the Silicon Valley Bank failure. As the government (in partnership with the Federal Reserve) works to prevent the crisis from spreading to other banks, there is debate on what the impact of another rate increase could be.
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The beauty counter is closed |
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As of March 16, 2023 PCAC and EAG hold shares of CVS in advisory client accounts and do not hold SIVB, LVMUY, or COTY. |
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