– Global equities and fixed income declined while Commodities rallied on a rebound in oil prices
– Ten of 11 sectors closed in the red. Energy was the only sector to advance for the week.
– International equities underperformed US stocks, with China down 2.9% and Germany declining 3.2%
– Crude oil prices snapped back this week gaining more than 8%. Bitcoin fell 7.9% after several weeks of strong performance.
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Market Outlook – Reigniting Animal Spirits
World Wrap
– Global financial assets were mixed. US stocks rallied, but Commodities fell on a sharp drop in oil prices.
– The rising tide in US equities isn’t lifting all boats. Four of 11 sectors are down year to date, while last year’s worst performing sectors are outperforming.
– Emerging market stocks lost ground as China’s equity market declined 5% for the week.
– The decline in commodity indices last week was broad-based and not confined to crude oil.
Market Outlook – Market Risk Index crosses above 75%
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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%