The month of December has been kind to the bulls and it’s not over yet. So far, the scorecard for the month is nothing short of incredible. The market has become entirely invulnerable to any sort of downside. Since December began we’ve seen a 32% decline in the VIX, new highs in investor sentiment and a continuation in the “buy the dip” mentality that began in September. The potent combination of better than expected economic data and the Bernanke Put has investors betting that stocks can’t sustain a downturn. And thus far they’ve been dead right.
- The S&P 500 is up 6.5% so far in just 16 trading sessions in December.
- 14 of the 16 trading sessions have been positive. That’s an astounding 88% win rate.
- The largest decline was on December 15th, a -0.43% decline.
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.