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Cullen Roche shares insights from his latest research, challenging the common belief about the usefulness of valuations in market timing.
According to Roche, while valuations are a poor tool for determining when to enter or exit markets, they are valuable for evaluating sequence of returns risk. He underscores that widely held assumptions about the role of valuations in market decisions may be misguided.
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Roche has previously examined the debate around artificial intelligence in banking, arguing that claims of mass cash movements caused by AI agents are overstated in a recent article. He has also highlighted that safeguards built into the financial system make AI-triggered bank runs unlikely, as detailed in a follow-up analysis. These prior views situate his latest comments within a broader skepticism about widely held market narratives.