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World Wrap

World Wrap

– Global stocks rallied – bonds and REITs sold off. US equities take the lead among asset classes.
– Over the last 3 mos, value stocks staging comeback, outperforming growth across mkt cap spectrum. Utilities sold off more than 3.5% as bond yields climbed.
– Emerging markets outperformed last week. US Dollar starting to weaken against Chinese Renminbi as optimism around Phase 1 deal builds.
– Bonds sold off nearly across the board, with the exception of US high yield. US Bond market has stopped pricing in add’l rate cuts.

World Wrap

World Wrap

– All asset classes rallied last week. Most of the gains from equities came on Friday on better than expected payroll numbers from the BLS.
– All large cap style indices broke to new highs last week. Mid-cap stocks are close, but small caps still have some work to do.
– Ten countries joined US equities to make new 52 week highs. Of the 10, only Switzerland made a new all-time high.
– Based on comments from Commerce Secretary, Wilbur Ross, optimism is building that the US-China “phase one” trade deal will happen this month.

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Market Risk Index

Market Risk Index scales from 0 to 100%. Higher readings correspond with higher risk markets. Scores below 25% are bullish. Scores between 25-75% are neutral, and scores above 75% are markets vulnerable to major drawdowns.

Model Category Readings (Percentiles)

  • Psychology 99.7% 99.7%
  • Monetary 87.2% 87.2%
  • Valuation 99.3% 99.3%
  • Market Trend 9.8% 9.8%