Silicon Valley Bank Crumbles Like It’s 2008
The biggest news in finance this week is the spectacular failure of Silicon Valley Bank (SVB).
Once the 16th largest bank in America, it’s now the second largest bank failure in U.S. history.
SVB was a favorite lender in the tech word, located in the heart of Silicon Valley. But now, every major news headline is calling its collapse a textbook repeat of the 2008 financial crisis.
On today’s podcast, Adam O’Dell and I explain exactly what happened with SVB — and why the FDIC swooped in to take it over.
It’s a complex issue, with bad investments and PR decisions on the bank’s end, combined with an overall volatile stock market.
And we’re still seeing that volatility.
Adam’s Trend and Momentum model for his Max Profit Alert service actually flashed some warning signs that the financial sector as a whole has been in trouble, showing weaker momentum in the past few weeks.
Adam explains how his stock rating system quantifies “momentum,” and can even pinpoint how a bank like Silvergate Capital was in just as much hot water as Silicon Valley Bank.
Tune in to today’s episode below!
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P.S. Silicon Valley Bank may just be the “first shoe to drop” in a larger banking crisis set to unfold.
If that happens, the losses some tech companies have already seen could soon look like a drop in the bucket.
Adam’s got his sights set on one household-name tech stock in particular … which, in his opinion, has plenty more room to fall.
Click right here for Adam’s most recent research on this company, including the full ticker symbol.