Here’s a radio interview I did last week with Dan Cofall on 1190AM. My segment starts around the 4 minute mark. Some of the topics covered:
- Explaining why monetary policy that directly targets stock prices can be misguided.
- The Bernanke Fed is essentially implementing the same “wealth effect” strategy that the Greenspan Fed lived and died by.
- Explaining Warren Buffett’s favorite valuation index – the Wilshire 5,000 relative to GNP.
- I don’t think we’re currently in a stock market bubble, but I think this valuation indicator should be paid close attention to as it tends to show instability in asset prices when it’s well above the 100% level.
- Why I think housing has probably bottomed, but will not boom again.
Listen in here.
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.