This past week, the latest bank collapse sent the wider banking world reeling.

The failure of two major U.S. banks—Silicon Valley Bank and Signature Bank—also sent shockwaves through financial markets, sending major bank stocks plummeting and temporarily halting trading in several regional bank stocks.

First Republic Bank saw its stock tank 62% on Monday after falling 33% last week. Shares of PacWest Bancorp and Western Alliance Bancorp fell 21% and 47%, respectively.

As for what this latest failure means for investors, experts say it’s an opportunity to reflect and look for ways to potentially take advantage of lower valuations.

“The SVB collapse should raise red flags for investors in high-premium securities in the venture capital and private equity sectors. Current economic conditions have already caused those high-valuation investments to unravel, and the SVB decline will likely exacerbate that trend,” said Clark Kendall, CFA, AEP®, certified financial planner. President and CEO of Kendall Capital in Washington, DC. “Bank stocks have reportedly lost at least $100 billion in market value since the crash. I think that’s an overreaction, but it creates an investment opportunity in attractive banks at this valuation.”

What investors have to say about investing in today’s markets

In times of hyperinflation when interest rates are reaching record-highs and seemingly stable banks are collapsing, it can be difficult to know what to do with your investments.

And recent data from JD Power shows that investor confidence is waning. Investor confidence fell 15 points to 581 (on a 1,000-point scale) in the last quarter of 2022, according to the JD Power US Investor Confidence Index, which tracks investor sentiment among US consumers aged 18 and older with investable assets. .

One of the main factors contributing to low investor confidence: inflation.

Overall, only 24% said they were very confident in their ability to keep up with inflation, down from 27% in Q3.

So where do we go from here? Well, we asked a handful of investors for their advice on what you should know about investing in today’s markets:

Clark Kendall, CFA, AEP®, CFP®, President and CEO of Kendall Capital

“Certainly, in the immediate aftermath of the regulators’ actions regarding SVB and several other banks, investors are fearful and shares of the banks are falling,” Kendall said. “I think it’s an overreaction. Opportunities in the financial markets today include fixed income securities such as US Treasuries, agency and municipal bonds, and high-quality dividend paying common stocks. Now is the time to take the passion out of your investments and look for opportunities to invest in attractive companies whose valuations can become more attractive.”

Colin Plume, CEO of Noble Gold Investments

“The only investors who have minimal cash in the bank are not afraid to run the bank. These are investors who know the importance of having a hedge, an asset that goes against the movement of traditional assets like cash and stocks. They realize the importance of investing in assets that are outside government control, the importance of investing in assets that have performed best during repeated economic downturns. These savvy investors invest heavily in gold,” Plum said. “It’s unfortunate that many investors only realize the importance of precious metals when things go south.”

Milind Mehre, CEO and co-founder of YieldStreet

“Increasing market volatility combined with a rising interest rate regime has resulted in attractive risk-adjusted returns on safe private debt investments. These include selective commercial real estate loan opportunities, which are secured by the underlying property they finance, art finance, which is loans collateralized by high-quality artwork, in addition to mid-market direct loan opportunities, which offer loans secured by assets. of borrowers,” Mehre said. “As the broad reference rate rises, the cost of financing debt rises, leading to stronger collateral levels as well as higher interest rates for borrowers with similar or better credit quality.”

Mina Tadras, CEO of Tadras Capital

“Investors should always reconsider their investment strategies. The economy is fluid and dynamic and changes quickly, so investments that previously seemed profitable or safe may no longer be the best choice,” said Tadrus. “Diversifying investments, such as investing in stocks, bonds and other products, can help reduce risk. Additionally, having cash reserves to pull through during times of economic hardship can also be beneficial. Finally, investors should closely monitor market and economic conditions to ensure that their money is being invested and managed safely.

Ron S. Geffner is a partner at Sadis & Goldberg LLP

“Investors must consider where they will put their assets and how they will invest their assets. “Retail investors, on average, unfortunately lack the sophistication to understand the risks associated with investing in the financial sector,” said Geffner. “It also calls into question whether the playing field is level and institutional investors not only based on their experience, but their access to information and the disparity of information and access to this information. Whether it is also benefiting to work quickly with time.”

Protect yourself and your assets

While investing always involves some level of risk, there are steps you can take to try to reduce some of that risk when the market begins to bear down.

  1. Diversify your portfolio. Take a close look at your portfolio and make sure you’re investing in a mix of different assets that don’t behave the same. Spreading your risk across asset classes and not putting all your eggs in one basket gives you the best chance of coming out on top, even when markets are more volatile.
  2. Keep an eye on the market, but don’t try to time it. Market timing is a losing game. By reacting quickly to changes in the stock market, you can actually make more losses. Knowing how your investments are doing is important, but avoid making sudden moves and panic selling your assets. Most experts will agree that you can make more profit by staying the course and riding out any short-term volatility.
  3. Rethink your investment strategy. Your portfolio mix and investment strategy should consider your appetite for risk. If stock market declines have you panicking, this may be an opportunity to consider whether your asset mix actually matches your risk tolerance and whether you should consider low-risk assets.


For investors who are at a loss for what to do next and how to navigate today’s markets, take a page from our experts’ books. Look for opportunities to invest in more profitable assets, try not to rely too much on your emotions when managing your portfolio, and be sure that what goes up usually comes down and vice versa.

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