– Global risk assets rallied, but US Treasuries and fixed income struggled broadly.
– Strong rebound in Energy stocks, drove Large and Mid-Cap value into positive ytd returns.
– Sharp increase in Latin American stocks for the week – now up 26% year to date.
– Fixed income was hammered across the board. Every major fixed income sector is in the red thus far in 2022.
– Psychology composite improves again, bringing Market Risk Index down to 72.3%.
– Monetary conditions crossed above the 80th percentile as conditions tightened further.
– One monetary indicator that is not on our current list of concerns – the yield curve.
– Sharp rebound from oversold levels for global equities, while Treasuries and Commodities declined.
– All sectors and styles advanced with the exception of Energy stocks, which sold off 3.6%.
– Risk on for fixed income markets as yields on credits fell, and Treasury yields climbed.
– Continuing claims for unemployment fell to 1.42 million, the lowest since February 1970.
– Psychology composite improved by more than 15% since last week.
– Monetary conditions have stabilized just shy of crossing into our tightest segment of readings.
%
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)
