The week was rather difficult for the stock market, as some US banks collapsed. Could it have an impact on your portfolio? We put the question to an expert.
“Canadians have nothing to fear. What we witnessed was a bank run. People feared for the safety of their money. And it wasn’t, because they were able to withdraw whatever they wanted from the Silicon Valley bank. Other banks have been implicated. But the one that worries at the moment is Credit Suisse, ”explains Fabien Major, financial planner and wealth management advisor at Équipe Major.
In the case of the bank Credit Suisse, it has encountered several problems over the past few years. In 2018, she was fined $5.7 billion by French authorities for helping clients avoid taxes, for example.
Due to her reputation, she begins to run out of funding. Its value is also falling, according to the expert.
On the other hand, “we should not [les problèmes de cette banque] are spreading in the banking world,” he adds.
What would happen if, in Canada, the management of banks was not safe?
“The Canadian rules are among the most rigorous, and even superior to those applied in Switzerland and other countries. On the other hand, we must worry regarding the panic effect as we see in crowd movements during a show, ”he believes.
“There are plenty of very interesting investments. Stock indexes have cut back, so there are bargains, and now you can find high-yield bank accounts. There is no shortage of choice,” he adds.
