Recent bank earnings have exploded higher on the back of trading profits. As the rally picks up momentum you have to wonder just how much of the rally is sustained on the back of the positive feedback loop due to banks putting money to work in the markets. A recent Goldman note points out the beneficiaries of such trading and the extraordinary shift from securitization to trading:
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.