The Tech Stock Meltdown Justified? Ask This CEO of a Key Silicon Valley Bank

Investors who are dumping tech stocks may be right to lighten the load. Here's what one key Silicon Valley Bank is seeing on the ground in the Bay Area.
Stocks quotes in this article: FB, TWTR, SF, BMRC

Maybe there is a good reason for the earnings related stock meltdowns for tech darlings (former) Facebook (FB) , Twitter (TWTR) and others. 

The businesses are exhibiting all the signs of a tech cycle nearing a top. Besides slowing second quarter growth rates in users signaling a top, trends in commercial real estate in Silicon Valley look frothy. 

"We haven't seen it [tech stock weakness spilling over] yet, but you are starting to see signs that there are a lot of commercial real estate being taken up by big companies," Bank of Marin (BMRC) CEO Russell Colombo told TheStreet. "But the problem is, if their businesses are starting to soften then they are going to take that space they leased and sublet it and the rates will come down." Bank of Marin is a key bank in tech land, boasting 22 branches in San Francisco, Marin, Alameda, Napa and Sonoma counties.

Colombo spoke to TheStreet on Tuesday at the 2018 KBW Community Bank Investor Conference, held by parent company Stifel Financial (SF) .

Here's what one community bank CEO based in Indiana told TheStreet about farmers and the Trump tariffs.

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TAGS: Fundamental Analysis | Investing | Technical Analysis | Trading | Banking | Financial Services | Community Banks | Video | Executive Interview |

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