The financials have performed worse, as a percentage of the market, than the tech stocks did during their vicious decline in 2000-2002. At these levels I believe the banks become very attractive as soon as we get the results from the stress tests and some resolution on nationalization. That’s an analysis I’ll delve into when our government finally decides to start attacking the problems head on rather than trying to prop up everyone….
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.