– A mixed week for asset classes – both US and international equities declined. Real Estate and commodities advanced.
– Most style factors moved higher with the notable exception of Large Cap and Large Cap Growth stocks.
– It was another difficult week for emerging markets, weighed down by China. China declined more than 6% and is down 12.3% ytd.
– A short squeeze and positive comments from Elon Musk pushed Bitcoin higher by 20%.
– Recent shifts in monetary conditions reveal a dichotomy of an improving liquidity picture constrained by inflation pressures.
– US equities struggled at the start of the week, only to finish the week at new highs. Commodities also rallied, while international stocks declined.
– Large Growth stocks have pulled within a couple of percent of Small Cap Value, closing what was a substantial performance gap over the last three months.
– Emerging markets slid more than 2% as China finished the week down 3.7%. China is down 6.6% ytd.
– Lumber prices staged their first bounce, climbing more than 18%. Natural gas prices climbed more than 10% and are up more than 50% ytd.
– MRI improves on Bank Sentiment and falling yields. Banks are easing lending standards.
– The Technical Indicators category deteriorated enough to become one of the largest detractors within the Psychology composite.
%
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)
