COVID-19. Brexit. The war in Ukraine. The debt ceiling. Certain events grab our attention. Headlines and talking heads inform, investigate, and instill fear and uncertainty. Investors can’t help but wonder what is happening. What does this mean for me? Should I DO something?
We believe understanding should precede action.
Thus, eight weeks into a crisis facing America’s local and regional banks, we are taking a moment to establish a baseline understanding of why this situation is so important. It’s not just about Silicon Valley Bank, Signature Bank, or First Republic. Local and Regional banks play an essential role in America’s economy, circulating capital efficiently between depositors, business owners, homeowners, developers, service organizations, and others. In many regards, these institutions serve as the lifeblood for much of our economic life.
Let’s take a moment to understand the situation. Then, as empowered and better educated investors, we can make more informed decisions.