The tide is going out and market reactions are beginning to return to normal

Micro back to the fore

During times of market volatility, we are often reminded of the famous Warren Buffet quote: "Only when the tide goes out do you learn who has been swimming naked."

Given the events of the past few weeks, it appears to be clear who those skinny dippers were. Rising interest rates and poor financial management have put America's regional banking system, and potentially the global one, under real duress, with Silicon Valley Bank (SVB) already succumbing from large losses on bond investments. While unrelated, Credit Suisse has now come into the firing line after its series of scandals and poor governance finally caught up with it and caused the share price to crash, spreading fears across financial markets that a 2008 style crisis is on the horizon. ...