– Led by Real Estate and Commodities, all asset classes moved higher for the week.
– After struggling since their peak in May, Transportation stocks showed signs of life, advancing by 3.8%.
– A broad weekly advance for international equities, as more than 90% of tradeable countries moved higher.
– Lumber and copper both climbed by 10%. Crude oil was up 3.8%
– Monetary composite drove MRI higher. Higher corporate and municipal bond yields are the culprit.
– Improvements to psychology composite stalled.
– Global equities rebounded, and Treasury yields moved higher.
– Pure value had solid performance while Pure Growth declined. Energy and Financials outperformed.
– Fixed income declined across the board. The price of a 30Yr Treasury declined by 2.7%.
– Soft September jobs report is likely to give way to positive surprises in October as federal unemployment benefits expired in September.
– Individual investors start to grow pessimistic, improving the Psychology composite modestly.
– Baa corporate bond yields are creeping higher. It hurt the Monetary composite this week.
%
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)
