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How I’m playing the SVB collapse with my ASX shares

Investors may have heard of the failure of US bank called Silicon Valley Bank (SVB). This article is about what I’m doing with my ASX share portfolio.

Banks do occasionally run into trouble and need assistance from investors by raising capital.

However, when economic conditions become extreme, it can mean some banks can’t handle the situation. The GFC was a good example of how things can go wrong in the banking sector. If some borrowers stop paying their loan and/or a large number of customers pull out their savings, then it can mean the bank doesn’t have enough capital/cash to keep running.

That’s what happened with SVB recently. Investors and depositors became worried about the bank, so depositors withdrew many billions, and then the bank wasn’t able to keep operating, so US regulators took over.

Depositors will get their money, but investors have been burned. There has been more volatility in the US banking system, with investors unsure if owning shares in some smaller US banks is a good idea.

What I’m doing with my ASX shares

A potential bank contagion doesn’t sound good. No wonder investors are fearful.

But, I’m not changing my portfolio at all. I haven’t made a single sale during 2023 and that’s not about to change.

A big part of that zen mindset is only owning shares that I’d feel comfortable owning during a crisis, and that those ASX shares are unlikely to go through much of a crisis in the first place. Share market ups and downs are common, so I want the names in my portfolio to be ones that I’d want to buy more of if prices went lower.

Businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Hearts and Minds Investments Ltd (ASX: HM1) and Future Generation Investment Company Ltd (ASX: FGX) are ones that I feel can make excellent long-term investments, particularly if we re-invest our dividends back into buying more shares.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of WHSP, Future Generation Australia and Hearts and Minds Investments.
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