– A broad rally across risk assets was led by US stocks.
– Every sector, style and factor finished the week in the green.
– The one-week median country return was 3.9%, but Emerging markets lagged as China declined 0.45%
– Fixed income and commodities moved higher. Bitcoin declined, breaking its recent tendency to mirror moves in US Growth stocks.
– Market Risk Index readings are growing more neutral for stocks, on improvements to investor psychology.
– Valuation improvements have driven return expectations for stocks higher by more than 400 basis points but still fall short of 10Yr Treasury Yields.
– US Equities struggled but international stocks and US Treasuries rallied.
– A sea of red for styles and sectors, but Energy and Healthcare stocks were a safe haven.
– A 4.7% bounce in China drover emerging market indices higher. China’s bear market is over a year old, and the country is easing monetary conditions.
– Several key commodities bounced back this week, but lumber and Bitcoin continued to decline.
– Psychology composite gives bear market rally vibes, but classic signs of capitulation are still out of reach.
%
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)
