Commodity Channel Index
|Bid||128.63 x 900|
|Ask||128.69 x 1100|
|Day's Range||127.82 - 129.53|
|52 Week Range||101.28 - 144.34|
|Beta (5Y Monthly)||1.10|
|PE Ratio (TTM)||10.37|
|Earnings Date||Apr 14, 2023|
|Forward Dividend & Yield||4.00 (3.15%)|
|Ex-Dividend Date||Jan 05, 2023|
|1y Target Est||158.49|
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Even with recent turmoil, Founding Partner and Managing Director of venture capital firm Khosla Ventures Samir Kaul says SVB is "one of the safest banks to bank with." Kaul told Yahoo Finance's Rachelle Akuffo that Khosla Ventures recommends companies keep some of their money at SVB, citing to FDIC's move to ensure 100% of all deposits. The firm, alongside several other venture capitalists, originally came out in support of SVB almost two weeks ago, issuing a joint statement encouraging companies to stay with the bank "in the event that SVB were to be purchased and appropriately capitalized." Even though almost half of all VC-backed companies banked with SVB, Kaul says the startup ecosystem remains "as vibrant as ever." That being said, he added the effects from the bank's early March collapse could take another 3 to 6 months to fully shakeout. The lesson to be learned from SVB's collapse: diversity. Smaller, more regional banks that specialize in certain industries are crucial for the economy. The hope, Kaul says, is that banks catering specifically to startups and entrepreneurs will still be around in the wake of SVB. Smaller, more specialized banks are important because they truly understand the unique needs of their customers. The California wine industry had a knowledgeable partner with SVB, and there's now uncertainty among some winemakers on how to move forward. Moving forward, Kaul recommends keeping three months minimum liquidity at multiple institutions, "just in case the unthinkable happens." Whether it's regional or larger banks, it's important to keep asset holdings "diverse." Key Video Highlights: 00:00:07 SVB is "one of the safest banks to bank with" 00:00:27 Regional banks are "crucial" for economy 00:01:34 Always have 3 months liquidity in case "the unthinkable" happens For our full conversation with Samir Kaul, click here
The current banking crisis has its roots in pandemic-induced low interest rates, a panel of experts told Yahoo! Finance Live. "The Fed made a terrible mistake to keep interest rates so low for so long," says Gillian Tett, U.S. editor-at-large at the Financial Times. She says the financial system is geared to preferring lower rates, and that the Fed's continued hawkishness shows the central bank is trying to "overreact and jam on the brakes to atone for the big mistake it made earlier." A period of low interest rates made it easier for banks to take bigger risks, but ultimately led to the collapse of Silicon Valley Bank as interest rates resumed their climb under central bank hawkishness. The collapse created instability in smaller regional banks, and even in larger banks like Credit Suisse (CS) with exposures to the sector. Several banks have undergone rescues, with Credit Suisse recently being bought out by rival UBS (UBS) in a deal orchestrated by Swiss finance officials worth $3.2 billion. Experts say the rescue plans give banks too much security. "They're aware of the risk, but they're expecting the bailout," says Dylan Ratigan, Host of “Truth or Skepticism” on Tastytrade. "These are people that benefitted from the credit expansion in 2006, then there was a massive overcompensation, which is the zero rates," he says. But while the solution is not yet obvious, Tett says rescue methods like guaranteeing deposits encourage and amplify risk-taking behavior among banks. "The only thing that's worse than moral hazard, which the system is riddled with right now, is unpredictable moral hazard," she says. Yahoo Finance's Brad Smith and Julie Hyman spoke to Tett, Ratigan and others. Key video moments: 00:00:52 - "The Fed made a terrible mistake to keep interest rates so low for so long." 00:01:51 - "The Fed is out of control running zero." 00:02:35 - "The only thing that's worse than moral hazard, which the system is riddled with right now, is that you have unpredictable moral hazard" Watch the full video here.
NEW YORK, March 23, 2023--J.P. Morgan Wealth Management’s Wealth Plan was named Best Personal Finance Product in the 2023 FinTech Breakthrough Awards. The tool, launched in December of 2022, is available for free in the Chase Mobile app and on Chase.com.