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Amid the rising interest rates, rough economic times, and general panic at many banks, financial banking institutions like First Republic Bank suffered heavily, many even going bankrupt.
One of the most timely examples of the cruel bear market in this U.S economy is the collapse of First Republic Bank. First Republic Bank, unlike traditional banks, historically has a high percentage of total clients being high net-worth clients. Since the FDIC only insures bank values for individuals up to $250,000, many of First Republic Bank’s customers, the high net worth individuals holding well over $250,000, were at severe risk of losing un-insured money if First Republic Bank were to go under.
Well… that exact scenario happened, and the market did not take kindly to the collapse. Since march 8th, the stock has dropped from $115 per share to just .28 cents!
Here is the silver lining for investors.
First republic bank recently was acquired by JP Morgan Chase, a conglomerate in the banking industry and an intuition that surely will lead First Republic on a much safer path.
Big institutions are grabbing up failing institutions left and right, like first republic bank, which could indicate huge growth potential if investors take the risk.
Now it goes without saying, this is not official financial advice, but here are some stocks like first republic where you can invest your money for potential great investment growth.
Silicon Valley Bank (SIVBQ)
Now, I’m sure you all have hard of SVB by now. The cat’s out of the bag with this one. However, with the SVB collapse, the stock over a long-term period could become an attractive target. The stock saw a drop from $267 per share to just .47 cents per share.
Signature Bank (SBNY)
Amid their 2023 crisis, signature bank dropped from $104 per share to just 13 cents! The bank was acquired by New York Bancorp and could hold a potential long term bounce back with the acquisition.
Carvana (CVNA)
Caravan early in 2023 declared bankruptcy. The tactical move stemmed from the large inventory of cars in Carvana’s arsenal that had to be sold at a loss due to the crashing car resale market from its extreme highs of 2022. the stock trades around $25 currently, and could be a potential buy for those who can look past the bumpy road of early 2023 for Carvana.
Conclusion
if there is a company you like in the long run, and you don’t let the fear of the market freak you out, then you could seriously be in for growth potential in some of these recently bankrupt companies!
