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World Wrap

World Wrap

– International Equities and Real Estate were the best performing key global asset classes. Real Estate is positive year-to-date for the first time in 2024.
– Sharp one-week rotation out of Large Cap Growth in favor of unloved sectors and style boxes.
– International equities rallied broadly for the second week in a row, with 40 of 45 countries advancing.
– The Consumer Price Index fell month over month for the first time since the COVID pandemic began, leading mkts to speculate the odds of a Fed rate cut are growing.

World Wrap

World Wrap

– Global equities finished the week higher. US Treasuries were flat. Tech and Large Cap Growth drove US Equity gains.
– One of the narrowest stock market weeks in memory. Seven of nine style boxes declined – there was a 5% one-wk gap between Large Growth and Small Value perf.
– Broad rally for international equities across developed and emerging markets with 40 of 45 countries advancing.
– Commodities advanced, and crude oil climbed back above $85 a barrel. The dollar declined.

Q2 2024 World Wrap

Q2 2024 World Wrap

– US Equities led all major assets classes in Q2 2024. Momentum in big cap Tech stocks drove US Equity performance in Q2.
– Small Caps finished the first 6mos of 2024 in the red. This is the widest first six months outperformance of Large Caps versus Small Caps in at least 50 years.
– Emerging markets rebounded in Q2 with strong outperformance, led by Asia and Emerging European countries.
– Lumber futures fell more than 20% during the quarter. Yields on Treasuries rose, driving corporate bond spreads to the lowest since 2007.

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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% 99.7%
  • Monetary 87.2% 87.2%
  • Valuation 99.3% 99.3%
  • Market Trend 9.8% 9.8%