Week of 03/06-03/10 Silicon Valley Bank Collapses, Market Crash Fears Rise

The collapse of Silicon Valley Bank (SVB) brings new worries to the stock market as we continue to battle inflation driven price action volatility. The S&P500 ended the week with its worst weekly loss of the year, closing at 386 points. The SVB closure has brought worries to other banks and market investors as we approach the new interest rate hike next Wednesday March 22nd. The FED will have to step into position to approach a soft landing of place the economy as well as the stock market in a rough course towards the remainder of the year. Recession fears are closing in to next week's decision as we see no clear indication that inflation is indeed cooling down. It seems that the fall of SVB is showing signs of the future of the banking industry and investors are not waiting around for confirmation since the volume of Friday's selloff indicates large position liquidations. As bad as things may seem, this could create investment opportunities to position and diversify portfolios at a reduced price.