– An 8.7% jump in Tesla’s stocks price was responsible for almost 15% of the performance of US equity markets this week.
– Growth stocks had such a strong week relative to value, that Large Growth pulled within 2% of 2021’s performance leader Small Cap Value.
– A 4.3% decline in Chinese equities took emerging markets down with it. Emerging market equities are flat on the year.
– US Treasuries rebounded from recent losses. Prices on 20Yr Treasuries climbed more than 3%.
– Bond market inflation expectations hit a new high – same for consumers.
– Market Internals improve – NYSE Advance/Decline line makes a new high.
– New all-time high for the Rydex Ratio
– Stocks advanced while Treasuries and commodities declined. REITs outperformed all major asset classes.
– Outside of Real Estate, Healthcare and Utilities were the best performing sectors.
– International equities moved higher, but performance was soft. Brazil declined more than 11% for the week.
– Most commodities took a breather, except for crude oil which continued to climb. Gold and silver also had strong performance.
– MRI moves up to 80.9%.
– Monetary composite deteriorates as belief in transitory inflation narrative continues to fade.
– Short-Term Sentiment Composite surges back into enthusiasm territory.
– Valuation determines whether a financial asset is a good inflation hedge, not its historical returns.
%
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)
