AVIOR INSIGHTS – How the Failure of First Republic Impacts the Financial System
On the morning of May 1, it was announced that First Republic Bank had been taken over by the FDIC and sold to JPMorgan Chase. Eleven major banks had previously infused First Republic with $30 billion in deposits to stabilize the bank after the failures of Silicon Valley Bank, Signature Bank, and Credit Suisse. This process found new urgency over the past week when First Republic revealed that uninsured deposits...
AVIOR INSIGHTS – What This Earnings Season Reveals About the Economy and the Banking Crisis
The corporate earnings season for the first quarter is underway and about one-fifth of S&P 500 companies have reported results. Investors are focused on these earnings announcements even more than usual due to ongoing economic uncertainty amid high inflation, slower growth, and the banking crisis. In this context, corporate profitability can shed light on how companies, sectors, and the broader economy are truly faring in this environment. For long-term investors,...
AVIOR INSIGHTS – Why the U.S. Dollar Is Still the Leading Global Currency
The U.S. dollar has been in the headlines due to an anticipated pause in Fed policy and concerns over the currency's place in the global financial system. However, to borrow Mark Twain's famous line, reports of the dollar's death are greatly exaggerated. While the role of the dollar has declined by some measures over the past two decades, fears of the dollar's demise are not new among investors and economists....
AVIOR INSIGHTS – Why Oil, the Fed and Jobs Are Surprising Markets
There is an old saying that happiness equals reality minus expectations. This is particularly relevant when it comes to financial planning and investing during times of great uncertainty. For investors, having unrealistic short-term expectations of investment returns and financial outcomes, as many often do in the late stages of bull markets and during asset bubbles, can lead to discouragement. Instead, history shows that by maintaining perspective and focusing on the...