With volatility up in 2023, it’s time to go low with investment risk.
Investors steered through calm waters in January and February, with stocks generally up on speculation that the Federal Reserve would curb its recent spate of interest rate hikes, and amid optimism that the Fed might throw in a rate cut or two by the end of 2023.
The S&P 500 was cooperating, up 3.4% through the first two months of the year, and the economy showed slivers of sunlight that encouraged weary market investors after a rough 2022.
Then on March 10, news broke of the collapse of Silicon Valley Bank, followed by Signature Bank’s shutdown two days later. The failure of two U.S. brand-name regional banks fueled fears of a major bank run as depositors grew more uneasy.