Regional Bank Fallout: The 1 Regional Bank Stock You Can Confidently Buy Right Now
Wall Street doesn't offer many guarantees. But when it comes to near-guarantees, Federal Reserve rate-raising cycles have a history of eventually breaking things -- at least on Wall Street.
To be fair, not all stock market corrections, crashes, and bear markets following the peak of rate-raising cycles are the fault of the nation's central bank. The COVID-19 pandemic, for example, had nothing to do with the Fed's lifting rates off historic lows throughout most of the 2010s. But rate increases have given way to a number financial crises, including the housing/financial meltdown in 2007-2008 and the savings-and-loan crisis of the late 1980s.
With the nation's central bank raising interest rates at the fastest clip in 40 years -- a move it was forced to make because of historically high inflation -- something was bound to break. That something, unbeknownst to many, was regional banking juggernaut SVB Financial (NASDAQ: SIVB), the parent of Silicon Valley Bank.
Source Fool.com
