Category: Banks
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Buffett is Selling Apple. Should You?
In a report released May 4, 2024, Berkshire Hathaway revealed that it has sold about 115 million shares of Apple, for proceeds of about $20 billion. About a year ago, in June 2023, we observed that Apple shareholders had enjoyed a phenomenal run. At that time, about a year ago,…
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Record-High Gold Prices: Does Gold Belong in An Investment Portfolio?
Gold is trading at record highs, with spot prices exceeding $2250 per ounce as I write this. The chart above might lead you to wonder if you should be investing in gold. In this post, we address two related questions: We’ll first give you the answers, offer brief explanations, and…
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Recession Warning: Does Falling M2 Signal A Recession?
The M2 money supply rose at an unprecedented pace in the two years following the covid pandemic. In the last year, that same M2 money supply has fallen at a rate not seen since the 1930s. In this post, we explain why the rise and subsequent fall in M2 makes…
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The March 2023 Banking Crisis: Is there More to Come?
In March 2023, multiple major regional banks including Silicon Valley Bank failed abruptly, contributing to a decrease in the industry’s valuation. A study by Yale researchers examined past banking crises resonant with the current situation and found that 80% of such events were systemic. They suggested the current crisis may…
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Bank Runs are a Feature, Not a Bug, of the Banking System
Several banks, such as PacWest Bancorp and Comerica Inc, have seen persistent stock decline, connoting market fears of banking instability and potential bank runs. This is due to the inherent nature of banks, where deposited funds can immediately be withdrawn, risking asset-liability mismatch. Despite regulatory rules like “held to maturity,”…
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Diversify or Die (with 57.8% Probability)
In February of this year, I was speaking with an advisor in Utah. We were discussing the use of a Stock Diversification Trust (click here to request an Advisor Guide) for a client who had 80% of her net worth in a single stock. She was reluctant to sell because she…
Sterling Foundation Management Blog 