– Boomers and Millennials finally agree on something – buy stocks.
– Thursday was the single highest number of net insider sales transactions since November 2004.
– Breadth hits a key bull market threshold.
– Historic one day shift in value versus momentum on vaccine day, suggesting a change in leadership is coming.
– Risk assets moved higher post-election with US equities attempting to take the lead from Treasuries for third time this year.
– Investors piled back into tech last week, but the vaccine news on Monday morning is likely lead to a rally in styles and sectors that have struggled in 2020.
– Several countries still have reasonable valuations, and a falling dollar should be a catalyst for higher prices.
– US dollar holding the lows from September. Should declines accelerate, it will put upward pressure on Treasury yields and the slope of the yield curve.
– Market Risk Index crosses back above 85%, as both monetary conditions and valuations worsen.
– Psychology’s second attempt at making substantial improvement since the August peak was thwarted.
– Election narratives don’t drive investment outcomes – credit cycles, emotional cycles, and the price of risk assets do.
– Risk assets declined dramatically across the board. Notably, Treasuries weren’t a great hedge, closing flat.
– All sectors and styles were in the red for the week as volatility shot higher.
– Of the 45 countries we track, only two moved higher – Nigeria and Indonesia.
– Bitcoin was the safe-haven that gold was not, advancing 3.1% while gold fell 1.3%.
%
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)
