What happened to SVB?

Hey Smart Investor,

We hope this email finds you well. Today, we wanted to bring to your attention a recent scandal that has been making waves in the investment world. The SVB scandal has affected investors in both stocks and cryptocurrencies, and we want to make sure you are informed on how to navigate through this tough time.

Here are some important tips to keep in mind:

1 SVB is a bank where people invest in startups, mostly in the tech industry. During the pandemic, there was a surge of people investing in this bank, including venture capitalists.

2 The bank invested the money in 10-year government bonds instead of treasury bills, which yielded less interest. They did not have the required reserves, but the US government relaxed this requirement during the pandemic.

3 As interest rates rose, the returns of the government bonds went down. The bank took a loss and decided to get out of the 10-year government bond market.

4 As companies withdrew their money, the bank run began, and the bank could not afford to give everyone their money back. The bank took a $1.6 billion loss and announced it, which led to panic and withdrawals from the bank.

5 The bank has been taken over by the FDIC, which only insures cash deposits up to $250,000. Over 97% of the money in the bank was not insured by the FDIC, so people are unlikely to get their money back.

6 This scandal is expected to affect the stock market and crypto market, as many companies have exposure to this bank. Investors should hold on and look at their portfolio and have some cash as things go down.

At Vestducation, we believe that informed investors make smarter investment decisions. We have helped millions of clients simplify their investments and navigate through market volatility. We are committed to providing you with the tools and resources you need to succeed in your investment journey.

Don't let this scandal discourage you from investing. It's important to stay informed and make calculated decisions based on your personal financial goals.

To get access to our course library and premium community, click the link below to subscribe to our plans at www.vestducation.com .We're here to help you make the most out of your investments.