March 17 2023 – Explorations & Discoveries

“Knowledge. Your personal brand is developed through knowledge. I’m sure you know someone in your life who talks a big game but clearly doesn’t know what they are talking about half the time.” 

~Brandon Turner

Unexpected Articles from this Week 

The collapse of Silicon Valley Bank had minimal effect on established medtech firms, according to analysts from RBC Capital Markets and William Blair Equity Research, as well as filings with the SEC. Most firms had sufficient cash, cash equivalents, and short-term investments held outside of SVB to cover expenses, and were quickly offered new lines of credit from other banks. There could still be knock-on effects, such as customers impacted by SVB’s closure, but analysts at BTIG have provided a list of companies and their exposure to the failed bank. Read more here

On Monday, First Republic Bank led a sharp decline in bank shares, in spite of Sunday’s extraordinary Federal Reserve actions to backstop all depositors in failed Silicon Valley Bank and Signature Bank and offer additional funding to other troubled institutions. Despite these measures, shares of First Republic and other regional banks fell sharply. There is now concern that other banks with large uninsured deposits may be at risk of deposit flight. SVB was the largest US bank failure since 2008, with First Republic coming in at second place with $213 billion in assets. Read more here

Despite interest rates at their highest level in two decades and the median U.S. home price having increased 42% since 2019, the spring homebuying season offers some hope for prospective buyers. Bidding wars that led to homes often selling for well above asking prices a year ago are less common, as higher mortgage rates have forced some buyers out of the market. Furthermore, the amount of time it takes for homes to sell is increasing, and some sellers are offering to cover closing costs for buyers in order to close the deal. Read more here

A combination of weather-related events is expected to cause a sharp frost in the second half of March, which could have detrimental effects on the winter wheat crop. This could result in an increase in wheat prices, although likely not to the same level as seen during last year’s Ukraine conflict. Investing in the CME May-dated contract for Hard Red Winter Wheat or the Teucrium Wheat ETF (WEAT) may be a good option for savvy traders. Read more here

Residents in parts of West Virginia and Maryland are experiencing mysterious white dust falling from the sky and officials are testing samples of the dust to identify if it is related to dust storms in New Mexico and Texas. Additionally, some are speculating that it could be related to a train derailment in Ohio that released a hazardous chemical, though a spokesperson from the Maryland Department of the Environment believes it is unlikely. Read more here

What I am reading

•I Feel the Need, the Need for Speed (Article)

Pushing Your Luck (Article)

Expectations Investing (Book)

Straw Dogs (Book)

Super Human (Book)

If you are looking for an investment in your startup, please tell me about your project.

As always – I would enjoy hearing from you (what you found interesting, the format of this email, notes from your own explorations, etc.), feel free to just respond to this email.  

Until next week, 
Ian Eliason