Despite bouncing sharply off the November 21 bottom in the S&P 500 we continue to see the breadth of the market deteriorate. The market has had every excuse to rally sharply in the last week – endless government cheerleading, a solid re-test of the November 21 low, a 40% rally in the financials, confirmation that nationalization is off the table, etc. The weakness in breadth is another clue that the risks of having heavy long exposure remains elevated.
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Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.