Friend uncle works at sivb for 15 +++yrs have 300k $$$ in sivb stocks... Not sure why did not diversified
90s% $ gone in 2d
Mama had 50k in first republic banks in sjc, matured 2 months ago... Asked her to move $$ to schwab so we bought more bonds... She is extremely lucky today... First republic may belly up next

"Although SVB was 50 years old? its hard to know in these situations."
@Devo- Yes, exactly my point. Lehman and Home Savings were big outfits too.

@gman57

They (Liesman, Santelli, others) were talking about how the banks were treated after they came to the rescue last time (Lehman's) that they may not be in such a hurry to help out now. Implying they got screwed by the government somehow.

That is frankly hilarious. It was the government and taxpayers who footed the bill for the banking sector executives' golden parachutes after the 2008-09 crash, and none of them saw any jail time for some of the nonsense they pulled with subprime. This time when they fail the government should say let them eat cake.

***Only 2.7% of Silicon Valley Bank deposits are less than $250,000.
Meaning, 97.3% aren't FDIC insured.****
Does that mean folks has >250k in cd @ Sivb are f%%%%%cked since Fdic only allow max 250k?
What happened to the cd at bears Stearns or Lehman Brothers... Anyone remember???? Did folks recoup the losses

Do business with solid institutions. We don't have to try out anyone's latest innovation or gimmick in matters of money. Although SVB was 50 years old? its hard to know in these situations. but explains why JPM is up 2.5% today. when in trouble, everyone goes to papa.

Hopefully we all know or understand that holding bonds or CDs of various types can easily lead to a capital loss if we are required to sell those types of instruments before maturity, and if their value has meanwhile deteriorated due to overall financial market conditions.
But I had never given any thought to the possibility of potential bank losses when they have parked substantial amounts of their money in "ultra safe" US Treasuries. An article in this morning's WSJ pointed out that banks are potentially in the same situation as we are.
A bank such as Silicon Valley Bank can have a significant amount of their capital in short-term "safe" Treasuries, but if they are faced with an unexpected run on their deposits, they can be forced to sell those Treasuries before maturity, and at a loss.
So even a reasonably run bank can get into trouble. In the case of Silicon Valley Bank, evidently a significant number of demand deposits are/were well in excess of the 250k FDIC protection, so when things got shaky a number of large depositors were very quick to attempt to withdraw very substantial amounts of the bank's deposits.
I suppose that there's a "lesson" of some sort to all of this, but I'm damned if I know what it is. Forget banks, use mattresses or a box buried in your backyard?

Is there any reason to think his message helped take your & my funds down today ?

We can wish …
@Derf - Check out how much the Fed has ratcheted up their overnight lending rate during the past 15 months.

I was taught in a college communications class more than a half century ago: ”A percept is a product.” / While we can mitigate the actual significance of the failure of SVB and put it into proper perspective, the perception out there among the investing public (and perhaps some in the investment community) may be substantial.
PS - Every teacher’s wish is that their students still remember what they were taught 50 years later. :)

What a day. First Republic Bank another one of those west coast banks had a low today of 45. As I post this it has almost doubled off its lows trading at 89. Looking more and more like Silicon Valley Bank is an outlier with its own specific problems. But with the weekend coming who knows what the market close has in store for us. Can’t see how this mini banking crisis can resolve itself in just one or two days.

Looking at a 1 year trend of SIVB, the stock was dropping steadily over the year. It was already down -50% before yesterdays drop, so I'm wondering if this really was a big surprise to influential investors or they saw the last shoe drop. In comparison, SPDR® S&P Regional Banking ETF (KRE) was only down around -6% during that same time.

Good morning,
The confusion about the table is related to my second article for the month, "Looking Beyond 2023 - Investing Lies and Statistics" where I describe year over year as a way of measuring inflation as an example. It has to do with two data points, one now and the other a year ago.
https://www.mutualfundobserver.com/2023/03/looking-beyond-2023-investing-lies-and-statistics/
The chart is comparing the fund performance for the last twelve months as of the end of January which would be from February 2022 through January 2023. In February 2022 the S&P 500 was down 2.8% as a starting point. In January 2023, the S&P 500 was up over 7% compared to the previous month. The one-year comparison is from a starting low point to an ending high point. People have it fresh in their minds that 2022 was a bad year and the table is not comparing the calendar 2022 period.
To validate the chart we can use the following calculator. For the calendar 2022 year (12 months) from January 2022 to January 2023, the S&P 500 lost 13.4%. For the twelve month period from February 2022 to February 2023, the S&P 500 lost 9.8% compared to loss of 8.3% in Chart #2 from the article. I am not sure why there is a 1.5% difference in the two reporting data sets. One difference is that I used VFINX which represents the S&P500 compared to the actual S&P500 index.
https://dqydj.com/sp-500-return-calculator/
As a final check, as of yesterday, using Morningstar, the one-year return on VFINX is minus 6.97% compared to SPY which is a minus 6.9%.
I just updated the table through February. I don't know how to display a picture so if someone can't help me out, I would appreciate it. Through February, the one-year return of VFINX is -7.8% which is close to the table in the article and the Morningstar estimate as of yesterday.
Symbol APR 1 yr % APR 2 yr %/yr APR 3 yr %/yr APR 5 yr %/yr
VFINX, -7.8, 3.5, 12.0, 9.7
VGYAX, -4.6, -0.1, 2.2, 3
VWIAX, -6.5, -0.4, 2.7, 4.5
GPANX, -3.7, -0.1, 3.5, 3.5
VTMFX, -5.5, 0.2, 5.5, 5.8
VGWAX, -3.3, 2.6, 6.7, 6.0
COTZX, -8.1, -3.3, 6.4, 7.2
PQTAX, 8.1, 12.5, 11.3, 8.4
REMIX, 5.8, 9.2, 15.5,
If I missed something, please let me know. I hope this helps.
Regards,
(Charles) Lynn

I am surprised this hasn’t gotten more discussion on the boards today.

Ditto. It came up on the Off-Topic board yesterday in a post by @Baseball_Fan - but I was the only one to make any remarks. - LINK
No - I don’t think this is anywhere near the equivalent of Lehman. Don’t expect a repeat of ‘08 either. But depending how far the Fed decides to push its 2% inflation goal, it might get nasty. Aside from all this, the competition from higher interest rates - especially at the short end - is putting pressure on equities. And banks have to be struggling due to the inverted curve. Not to make too much of 1-day, but was surprised to see an intermediate term high yield fund I own break even yesterday. Expected worse.

El-Erian ***US banks can contain contagion risk and system stress stemming from the turmoil unleashed by SVB, says
@elerianm
But he warns that while the US banking system "is solid as a whole... that does not mean that every bank is"
Think most large banks performed well w last previous stress test/check ups past few yrs
Futures flat lined
Everyone waiting unemployment reports this morning
Think most index crossed 200mda yesterday critical support zones.... Perhaps bounced if morning reports extremely poor and feds consider 0.25 basis points, Macd stotastics also rolled over. If no bounce perhaps sp500 3820s next support levels closing in.

I am surprised this hasn’t gotten more discussion on the boards today. I can’t recall the last time I saw a component of the S@P 500 lose 60% in one trading session. Various banking indexes got hit hard today in the aftermath and a couple other west coast bank saw double digit losses. Of course SVB pales to the once size and importance of Lehman during the financial crisis. And preeminent banking analyst Mike Mayo said today with the major banks we could be much closer to a bottom. SVB continued downward in after hours trading impacting the stock futures which are looking ugly as I post this.
On the bright side this could tempt the Fed to take its pedal off the gas. The employment report could also change things around in a hurry - or not.

https://www.marketwatch.com/story/the-10-banks-that-may-face-trouble-in-the-wake-of-the-svb-financial-group-debacle-50d6e49e?mod=home-page
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/marketmind-bye-kuroda-boj-takes-220502194.html
Nobody know
Folks who think could be new Lehman on horizon??
Thinking selling 50% of all asset tomorrow

Call me skeptical, but it sounds like the rep just looked at the current literature, i.e. Artisan's page giving the backgrounds of its international value strategy managers and as you wrote, the current prospectus. Neither you nor the rep know whether what he was reading was correct, just that Artisan had put something on paper. And he didn't dig any further.
Artisan may not have been able to tell you what Oakmark funds it claims that Samra managed, but I can, by referencing Artisan's old prospectuses. In the final prospectus (Aug 26, 2002) before ARTKX launched (Sept 23, 2002), Artisan names a OAKIX and OAKEX as funds Samra had managed.
It looks like Artisan's legal beagles promptly went to work. The full annual Artisan prospectus put out two months later (Nov 1, 2022) dropped the claim that Samra had been an Oakmark portfolio manager by dint of his having worked in the investment team (as an analyst?).
From this point on, Artisan's prospectuses said only that Samra had been a senior analyst on these funds. Then in 2012 Artisan stopped giving Samra's Oakmark history.
A related curiosity is that Artisan didn't say anything about Samra having worked on OAKGX until it was about to launch its own global fund (2007). Then Samra's global fund history with Oakmark (as an analyst) apparently became worth mentioning.
Prospectus chronology:

• August ___ 2002: Mr. Samra was a Portfolio Manager and analyst with Harris Associates L.P.
  
• Aug 26, 2002: Mr. Samra was a Portfolio Manager and Analyst with Harris Associates L.P. ... where he was a member of the investment team managing the Oakmark International and Oakmark International Small Cap Funds.
  
• Nov 1, 2002: Mr. Samra was employed by Harris Associates L.P. ... where he was a Senior Analyst on the Oakmark International and Oakmark International Small Cap Funds.
  
• Sept 26, 2003: [same]
  
• Jan 30, 2004: [same]
  
• Dec 1, 2004: [same]
  
• Jan 31, 2006:[same]
  
• Oct 1, 2006: [same]
  
• Oct 2, 2006: [same]
  
• Jan 1, 2007: Mr. Samra was employed by Harris Associates LP ... where he was a Senior Analyst on the Oakmark International, Oakmark International Small Cap and Oakmark Global Funds.
  
• Jan 28, 2008: [same]
  
• Jan 28, 2009: [same]
  
• Oct 1, 2009 (supplement): [same]
  
• January 13, 2010 (supplement): [same]
  
• Jan ___ 2010: [same]
  
• Jan 28, 2010: [same]
  
• Jan 28, 2011: [same]
  
• Jan 28, 2011, supplemented May 26, 2011: [same]
  
• Feb 1, 2012: [Removed prior history]

This suggestion by YBB is very wise indeed. Keep TIPS maturities <= 5 years. I frankly like the idea. So why go longer maturities? No two portfolios are the same. There are a 1000 ways to make potatoes in India. We must all solve for what works for us.
Incidentally I have been listening to a lot of Myron Scholes lately on this podcast:
https://www.janushenderson.com/en-us/advisor/bio/myron-scholes-phd/
This podcast is available online for free and I listen to it on my phone while walking. He speaks fast and there are many complex topics but he is dealing right in the heart of all the topics related to portfolio construction. Listening to it is humbling because there is just so much to it even for the sophisticated investors.
None of this is supposed to be easy. But I do agree that YBB's suggestion is a step in the direction to make it easier.

If the idea is to keep up with inflation (CPI), shorter-term (=< 5 yrs) TIPS held to maturity would do that approximately. Then, roll them over and over. Make a ladder. Chart below shows CPI vs 2 common TIPS funds, ST and IT/LT; default timeframe is 1 yr but that can be changed.
Using funds introduces rate and duration factors.
https://stockcharts.com/h-perf/ui?s=VTIP&compare=$$CPI,TIP&id=p06767927681

Stinky poopy day, today.

We're just pricing in the 50 basis point FED hit next week. My crystal ball doesn't see anything good happening for a while. Don't fight the FED. Isn't that the motto?

No argument here. Interesting guest just now on Bloomberg tv. From Quill Intelligence, out of Dallas. Danielle DeMartino Booth. She says, "YES! Don't fight the Fed, but that's exactly what the markets are doing." She sounds like she knows a thing or two. Nothing about what she said on camera felt "canned" to me.

SCHW down 12.76% today. Part of a big sell off in financials. Re +.50% rate increase. Let’s wait and see. This Fed “toes the line” about as well as a drunken sailor. (Admittedly, they’ve been slip-sliding into the gutter lately.)