– Commodities were the only asset class winner for Q3, riding a move by crude oil to $90 a barrel. All other major asset classes declined.
– Small cap value stocks are down year-to-date. They are lagging Large Cap Growth stocks by the most amount since the Covid and Internet bubbles.
– Emerging markets finished the quarter 2.5% lower, just holding on to a positive 2.2% year-to-date return.
– Fixed income struggled as Treasury yields broke to 10 year highs. Crude oil futures were up more than 30% in Q3.
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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%