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Should I be worried by the recent banking turmoil’s impact on the stock market?

March 2023 was a significant month for banks in the US and globally. On March 10th, Silicon Valley Bank (SIVB) succumbed to a phenomenon called a “bank run” resulting in the largest failure of a US bank since the 2008 global financial crisis. Two days later, a second regional US bank, Signature Bank, was shut down. The developments don’t stop just in the US. Switzerland’s largest bank, UBS, agreed to buy its rival, Credit Suisse, in a rescue deal to help ease concerns in the global financial markets stemming from the turmoil facing some American banks.

All this to say: investors might be worried and eyeing their exposure to these regional and global banks. While it is natural to worry about the sensational news headlines being published these days, it is important to also step back and look at the bigger picture. Regardless of if a bank, or any other company for that matter, falters or not, your investment plan shouldn’t.

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