At the height of the credit bubble financial stocks represented 22% of the S&P 500. After shrinking to just 9% in early March the financial sector has skyrocketed back to a 15% share of the S&P 500. All of this money printing and reflationary government intervention is helping fuel the beast that caused this entire crisis. The banks are back and that’s not necessarily a good thing:
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.