– The QE era has coincided with more than a decade of dominance for US equities over international stocks.
– Energy was the best performing sector, and Pure Value beat Pure Growth, but it didn’t stop Large Growth (FAANG) from besting all style box categories in 2021.
– Emerging markets closed the year in the red. China was the second worst performing country behind Turkey.
– Building a house grew more expensive. After a monster rebound by more than 70% in the 4th quarter, lumber prices closed the year up 114.9%.
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Market Risk Index
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)
- Psychology 99.7%
- Monetary 87.2%
- Valuation 99.3%
- Market Trend 9.8%