A Modern-Day Bank Run, a Tale of Two Economies, Federal Reserve Credibility
March 10, 2023 | FIRESIDE CHARTS
Silicon Valley Bank’s announcement that it was raising capital on Wednesday caused a crisis of confidence leading to a traditional bank run. Consumers and companies are adding debt. New orders are growing again to start the year. A tale of two economies. The Federal Reserve still has credibility on inflation. Risk appetite remains muted.
1. Regulators moved quickly, shutting down Silicon Valley Bank on Friday:
Source: Bloomberg
2. Consumer credit has growth significantly but is still below pre-covid levels as a percentage of disposable personal income:
Source: Daily Shot 3/8/2023
3. Companies have held off on adding debt at higher rates but, as higher rates linger, they are beginning to borrow again:
Source: @WSJ Read full article
4. As consumers continue to spend, companies will have to replenish their inventories:
Source: Daily Shot 3/6/2023
5. Not all companies over hired last year, many are still looking to add workers:
Source: @Lvieweconomics
6. Despite fears of a recession, industrials stocks were trading near an all-time high at the beginning of the week:
Source: Daily Shot 3/7/2023
7. Oil producers are remaining disciplined on capital spending:
Source: Alpine Macro
8. Hawkish sentiment from Jerome Powell sent interest rates higher and inflation expectations lower:
Source: Daily Shot 3/8/2023
9. The short-lived rally at the beginning of the year didn’t do much to change investor sentiment on equities:
Source: JP Morgan Research
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.