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World Wrap
– US Equities were unchanged, while all other key global asset classes declined.
– Nvidia sucked the air out of the room last week. Large Cap Growth and Tech were the only style and sector to advance.
– Emerging markets suffered their first down week in a month – ending a powerful run. China pulled back more than 4%.
– Metals and Energy pulled back. Gold was off more than 4%, while the dollar was flat.
Market Outlook – Markets in Speculative, Trend Extrapolating Feedback Loop
World Wrap
– Broad rally among financial assets globally with Commodities leading the way.
– All style boxes advanced led by Large Growth and Technology stocks. Widely followed US indices made new all-time highs, but only 2 of 9 style boxes did the same.
– Emerging markets outperformed. China was up 4.3% and has climbed more than 18% over the last month.
– The dollar declined, while Energy and Metals prices surged – natural gas futures were up more than 12%.
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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%