– US equities rose modestly, while International equities declined – a reversal of the previous week.
– Energy is the only sector that is up ytd, and it’s up big, more than 18% in January.
– Stock market angst finally hit Emerging markets, which turned negative on the year after falling more than 4%. China declined nearly 8%.
– Higher energy prices are largely responsible for commodity strength. Other key commodities are flat or down.
– Sharp improvement to several measures of investor sentiment.
– Monetary composite deterioration blocks any potential improvement to the Market Risk Index.
– A tough week for US equities, which declined 5.9%. Commodities lead all asset classes year-to-date.
– Stock market correction has been noticeably sharper for growth stocks across the board.
– Emerging markets outperformed and are still holding onto gains. China too is up in January.
– Every sector of fixed income is down. Bitcoin declined 15.3% last week and is down more than 20% ytd.
– Rising rates increased the Market Risk Index to 90.7%.
– Few indications of a wall of worry 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)
