– Risk assets rallied, and REITs put in the strongest showing. US Treasuries declined.
– Quality and growth continue to struggle as risk seeking investors embrace value and unloved areas of the market.
– Developed markets beat emerging markets. Weakness in Chinese equities continue to weigh on emerging market indices.
– Treasury yields have reached levels that have stabilized the US dollar, but there are still no short-term signs that yields have stopped rising.
– MRI climbs to 96.3, the 13th consecutive weekly increase.
– A modest weekly performance in asset classes masks what was the most volatile week of 2021 thus far.
– Growth’s pain was Value’s gain. Value stocks rose more than 5% as growth stocks declined 4.8%.
– The dollar rallied, and bond prices still fell. The 20yr Treasury is down 11.9% year to date.
– Most major commodities struggled, but crude oil did the heavy lifting. Oil climbed nearly 8% for the week.
– MRI at 96.1 – inflation and interest rate rates of change are responsible for the deterioration.
– Short-term sentiment isn’t giving aggressive dip-buyers much in the way of contrarian evidence.
%
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)
