– Correlations “went to one” last week as all major asset classes declined together. Commodities were hit hardest.
– Most of the selling pressure was focused on Growth, Momentum, and Tech stocks.
– Emerging markets slid by more than 3% on continued weakness in Chinese equities. China is down more than 4% year to date.
– Crude oil and gold climbed slightly, while lumber had a 7% pullback from a steady string of new all-time highs. Bitcoin dropped another 11%.
– PPI Inflation accelerated in April, ensuring that inflation will be part of the stock market narrative for several months.
– Anecdotal evidence that retail trader risk-taking is softening, but we aren’t seeing it in the psychology composite yet.
– Inflation sensitive asset classes continue to dominate year to date performance.
– The Energy sector was up a whopping 8.9% last week and has climbed over 40% thus far in 2021.
– Still no traction for emerging markets. China was down more than 2% and is in the red for 2021.
– Another new all-time high for lumber prices after climbing 12.4% last week. Lumber is up more than 400% over the last 12 months.
– ISM Price Index climbs again.
– Dogecoin market cap surpasses General Motors and British Petroleum.
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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)
