Learning from Silicon Valley Bank

| Tags: Business

If you needed a reminder that markets are conversations SVB handed you one this month. SVB lost control of its narrative in 24 hours. By which time $700m had been withdrawn. Investors were advising their portfolios to run away and run away they did. The story is fanning out around the world; “banks are vulnerable, are we all?”. Truth is more powerful than fact and when absorbed into a cultural narrative can be very destructive. 

All types of media have locked on the same negative narrative. It will be interesting to see how it evolves or is changed over the next few weeks. A positive narrative is as powerful as a negative one and in these days of a post pandemic war torn world, a positive narrative could be very beneficial.