I’ve been vocally and aggressively short as the risks over the last few weeks have struck me as being extraodinarily high. This market has that sort of panicky feel that we get before government comes in with the nuclear option and attempts to regain market confidence. The move in the last few days has been unbelievable. The market has crashed again! Down almost 800 as I type. I was not short into Lehman (though I was 100% cash), but I now know how that must have felt.
I am moving to 100% cash from being heavily net short. Government must step in here to regain control of the situation. I am not calling for an end to the selling, but from a risk management perspective it is best not to be greedy here. Of course, I don’t think there is much the ECB can do to resolve these issues as this is an inherent currency issue, but something must be done….This is getting ugly….
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.