Riggs Report

Modern Day Bank Run

Modern Day Bank Run and Implications for Investors

We have had a lot of conversations with clients and friends over the last two weeks asking us for our insight into what is going on with banks. This is a complex and fast-moving situation, but at the core is a concern for the safety of bank deposits.    

On Thursday, March 9th, Silicon Valley Bank (SVB)—a bank that serves start-up businesses, technology companies, venture capitalists, and others—experienced a run …

Making Money on Cash

Making Money on Cash

Nearly a year ago, the Federal Reserve embarked on the fastest interest rate hiking program in its history.  Last year this presented a challenge to all asset classes except one—cash. While the investment market is rebounding nicely this year for stock and bond investors, what about making money on your cash savings?

For years, savers have received paltry returns for their savings, but the Federal Reserve changed that last year as they aggressively raised rates.  At …

Making Money on Cash

Making Money on Cash

Nearly a year ago, the Federal Reserve embarked on the fastest interest rate hiking program in its history.  Last year this presented a challenge to all asset classes except one—cash. While the investment market is rebounding nicely this year for stock and bond investors, what about making money on your cash savings?

For years, savers have received paltry returns for their savings, but the Federal Reserve changed that last year as they aggressively …

2023 – A Promising Year for Investors

A Promising Year for Investors

For nearly all investors, 2022 was a challenging year. Equity and fixed-income markets saw double-digit losses due to the Federal Reserve’s rapid rate hiking cycle, which caused shockwaves throughout the financial system. However, 2023 looks much more promising, with several factors pointing towards a better investment climate than we saw in the past year.  Let’s take a closer look at some of these factors.
 
In March of 2022, the Federal Reserve embarked …

2023–A Promising Year for Investors

2023–A PROMISING YEAR FOR INVESTORS

For nearly all investors, 2022 was a challenging year. Equity and fixed-income markets saw double-digit losses due to the Federal Reserve’s rapid rate hiking cycle, which caused shockwaves throughout the financial system. However, 2023 looks much more promising, with several factors pointing towards a better investment climate than we saw in the past year.  Let’s take a closer look at some of these factors.
 
In March of 2022, the Federal Reserve embarked on a fast …

Brighter Days Ahead

Brighter Days Ahead

The third quarter is officially in the books, and it was another bumpy ride for investors. After getting off to a strong start, U.S. equities faltered. A hotter-than-expected August Consumer Price Index (CPI) reading dashed hopes for a slowdown or pause from the Federal Reserve on their quantitative tightening program.  As you will recall from our previous Riggs’ Reports, we outlined the extraordinary efforts by the Federal Reserve to provide support and liquidity to …

Inflation Not Yet Rolling Over

Inflation Not Yet Rolling Over

We have often commented in our Riggs’ Reports and investment market updates that the markets do not like surprises.  Yesterday, the markets expected the Consumer Price Index report to show a decrease in prices, indicating inflation was peaking.  This would give the Federal Reserve some latitude to slow its hiking of interest rates.  The market was wrong, resulting in a strong sell-off in equities, bonds, and cryptocurrencies.  The strong days leading up to the Consumer …

Inflation Not Yet Rolling Over

Inflation Not Yet Rolling Over

We have often commented in our Riggs’ Reports and investment market updates that the markets do not like surprises.  Yesterday, the markets expected the Consumer Price Index report to show a decrease in prices, indicating inflation was peaking.  This would give the Federal Reserve some latitude to slow its hiking of interest rates.  The market was wrong, resulting in a strong sell-off in equities, bonds, and cryptocurrencies.  The strong days leading up …

Fed Gets Aggressive On Inflation And Market Rallies

Fed Gets Aggressive On Inflation And Market Rallies

Today the Federal Reserve raised the Fed Funds Rate by 75 basis points, 25 basis points higher than they originally announced at the May meeting.  With stubbornly high inflation, the Federal Reserve was clearly behind the curve, and today, they made a significant step forward.  The Federal Reserve is taking the most aggressive policy stance in decades, and the U.S. Stock Market rallied on the news. 

While we are …

The Fed Gets Aggressive on Inflation and the Market Rallies

The Fed Gets Aggressive on Inflation and the Market Rallies

Today the Federal Reserve raised the Fed Funds Rate by 75 basis points, 25 basis points higher than they originally announced at the May meeting.  With stubbornly high inflation, the Federal Reserve was clearly behind the curve, and today, they made a significant step forward.  The Federal Reserve is taking the most aggressive policy stance in decades, and the U.S. Stock Market rallied on the news. 

While we are happy