Perpetually Looking Forward

On Friday and over the weekend, two large banks experienced a "bank run" that caused the FDIC to step in and take over both organizations. The spark that began with California-based Silicon Valley Bank quickly spread to New York with the shuttering of Signature Bank on Sunday. In order to further stem a contagion through the banking system and calm capital markets, the FDIC, Federal Reserve, and US Treasury announced a joint statement that they would guarantee all deposits at both banks beyond the $250,000 federally insured limits. Furthermore, they announced the creation of the Bank Term Funding Program (BTFP) to provide liquidity support to other banks that request it in exchange for government-related collateral. This should calm markets for the moment. We won't use this update to go into how this happened and how it compares to the 2008 financial crisis (we don't think this is as bad, and money center banks are not the culprits this time, plus they are now in a more defensible position). Rather, we will share our thoughts on the market opportunities present in this environment.

Nobody likes to think about their own mortality. But if you own a business, it’s your responsibility to do just this by planning ahead for how your business would continue if you unexpectedly died or became disabled. 

If the US economy falls into a recession this year, it would be one of the most widely telegraphed, with over 60% of 70 economists surveyed by the Wall Street Journal in January predicting a contraction in GDP within the next twelve months. This is up from under 20% in January 2021. 

We are pleased to announce that Tom Morr, CFP®, CAIA and Wayne Yi, CFA, have been promoted to Partner effective as of January 2023. These promotions mark the first time since 2013 that an employee of the firm has been named Partner (3 strategic hires have joined Simon Quick as Partners since that time). 

The clients we work with often express a desire to give back to their communities by supporting charitable causes they’re passionate about. Establishing a private family foundation can be an effective vehicle to accomplish one’s charitable wishes.

You have no doubt heard the saying, “Don’t put all of your eggs in one basket.” This sums up the role of asset allocation when it comes to maximizing returns on your investments. Studies have shown that asset allocation, not security selection or market timing, is the main driver of investment returns over time.

The $1.7 trillion budget bill that was signed into law late last year included legislation affecting retirement savings for many Americans. Dubbed the SECURE 2.0 Act, this legislation makes a number of key changes to the rules governing popular retirement accounts including IRAs, 401(k)s, 403(b)s and Roth accounts.

2022 concluded on a positive note, with both equities and fixed income generating positive performance during Q4, despite a challenging year overall. While Central Bank action has been the primary driver of volatility and price declines in 2022, a slowdown in the magnitude of rate hikes and growing expectations for a pivot in policy in 2023 helped to drive markets higher. The S&P 500 advanced 7.5% during Q4, while the Barclays US Agg Bond Index was up 1.8%.