As you are likely aware, there has been some turmoil in the markets, attributable to a handful of banks that appear to have a limited deposit diversification. In essence, these banks worked with customers from a much more concentrated profile than many of the larger banks that Hudson Valley Investment Advisors (HVIA) follows and owns. HVIA does not have any exposure to the banks that are impacted.
This doesn’t appear to be an industry wide problem, and does not reflect the credit issues that occurred in 2008. Additionally, the Federal Reserve has stepped in quite early and is acting to support the Treasuries based collateral that the banking industry utilizes.
If you should have any questions regarding how Hudson Valley Investment Advisors is handling the shifting investment environment, or have concerns about your portfolio, please don’t hesitate to give us a call.
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Covid-19 caused our economy to grind to a halt almost overnight and since then, the U.S government has moved to provide trillions of dollars worth of stimulus. We must ask ourselves, where is this coming from? The answer: the money is being raised through borrowing and for 2020, an estimated $4.5 trillion worth. The WSJ goes into detail on where this money is coming from and why it is not as bad as it may seem.