As the ship sinks the panic levels are increasing. Although I am uncomfortable being overweight short or long at this point I would expect a major panic low to set-in soon assuming the government doesn’t step in to rescue the market from itself. FYI – the market wants to go lower and needs no rescuing or government meddling. We need a panic low to create a base for any sort of sustained upside move. Until then it’s likely that the buyers will wait for lower prices.
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.