Man overboard - SVB's demise reminds investors of the need for plan B

Prepare for turbulence

There has been enough news flow in the past few days to get the sense that investor fear is on the rise again.

As human beings, we are absolutely conditioned to "fight the last war". That is to say we attribute higher likelihoods of recent traumatic events occurring again and take preparations accordingly. So, when a relatively niche bank in California announces that without a rescue package it is going to the wall - we see Lehman Brothers all over again. Yellen claims US banking system is 'sound' amid collapses and bailouts I am not going to get in the detail about why the failure of Silicon Valley Bank is unlikely to bring on the next global financial crisis, but in short, the relatively ...