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Single Point of Failure Risks: What Could Break Markets Next?

  • Admin
  • Feb 2
  • 1 min read

Many investors think risk is always slow and visible. But history shows markets often fail at a single pressure point.


SNIB introduces a powerful concept: the “single point of failure.”


Past example: 2008

In 2008, the failure point was the banking system — linked to:

  • mortgage-backed securities

  • manipulated credit ratings

  • excessive leverage


Today’s possible weak points

SNIB highlights modern systemic concentration in:

  • ASML (chip manufacturing machines)

  • TSMC (chip production)

  • NVIDIA (chip design / AI compute)


These companies are deeply connected to global innovation capacity. Disruption here would affect far more than a single sector.

2026 Global Assets
Long Term ZAR Expected Returns

The other bottleneck: infrastructure

Even if AI continues to grow, there are physical constraints such as:

  • power availability

  • cooling capacity

  • grid capacity


Why diversification is non-negotiable

SNIB’s solution is not prediction — it’s preparation:

  • diversify funds

  • diversify styles

  • diversify regions

  • diversify currencies

SNIB Signature

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