– One of the most volatile weeks in 2022 finished with all major asset classes closing in the red.
– There were safe-havens last week. Value stocks, Consumer Staples, Healthcare, and even the Dow managed to move higher.
– Emerging markets were hard hit, as Chinese equity markets fell more than 6%.
– The dollar rallied and finished the week less than 1% away from new highs.
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Market Outlook – Investor Psychology is finally throwing a lifeline to bulls
World Wrap
– Despite a volatile week, global equities and commodities finished higher. Treasury yields moved higher.
– Energy stocks snapped back 13.9%, now up 53.9% year to date.
– Crude Oil bounced more than 16% as OPEC announced supply cuts.
– The dollar bottomed in the middle of the week as stocks peaked and closed out the week with a 0.6% advance.
Market Outlook – Psychology is approaching the best quintile of readings
%
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%