- What a dramatic turnaround this morning! Stocks are trading with a perfect inverse correlation to the dollar. This morning’s sharp turn in the market is the direct result of the rising dollar.
- Could the sell-off be the result of no buyers at these high valuations? Sellers are just hitting the bids, but the bids don’t appear to be there….
- The banks were never buying the rally this morning as regionals traded deep in the red. Are investors beginning to anticipate the potential of a further decline in home prices and regional bank balance sheet deterioration?
- The rally in the dollar is impressive, however, the near 10% rally in the VIX is even more impressive. Is short covering in the dollar resulting in a reach for downside protection?
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.