Investment Commentary

The Market in Five Charts: April 2023

A Breakage in the Economy

April 3, 2023 - Last month the failure of Silicon Valley Bank rocked the financial markets and caused tremors throughout the entire banking system. Chief Global Strategist Rick Pitcairn says that the issues that surfaced have revealed a vulnerability in the Federal Reserve’s policy to bring inflation under control regardless of whatever it breaks in achieving this goal. “Well, something just broke,” says Pitcairn, “and it puts the Fed in an interesting position of trying to balance financial stability across the system against their traditional role of price and inflation control.”

Pitcairn says in this month’s Market in Five Charts that the broad banking sector is sounder than it was in 2008. However, more restrictive lending policies will hamper growth and as a result, the odds of a recession happening have increased.

 

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About Pitcairn

Pitcairn is a true family office and leader in helping families navigate the challenges and opportunities created by the interplay of family and financial dynamics. Through Wealth Momentum®, an experience-based family office model, Pitcairn helps families achieve a more effective and complete experience. Since its inception, Pitcairn has partnered with some of the world’s wealthiest families to meet their needs and drive better outcomes – year to year, decade to decade, generation to generation. Today, Pitcairn is recognized as an innovator, guiding families through generational transitions and redefining the industry standard for family offices. The firm is located in Philadelphia, with offices in New York and Washington, DC and a network of resources around the world.