– Global financial assets rallied during the third quarter, with real estate and international equities leading the way. Commodities declined on lower oil prices.
– Q3 was good for unloved areas of the mkt. Small caps and value stocks outperformed. Utilities rallied 19.4% to become 2024’s best-performing sector.
– Emerging markets outperformed on strength from China. Its equity market climbed almost 24%, with most gains made in the last week of the quarter.
– Gold prices bounced 12.9%, continuing a steady pace of new all-time highs throughout the quarter.
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Market Outlook – Bull Market going as Dot-Com Era for Halloween.
World Wrap
– Mixed week for global financial assets. US stocks climbed, while international equities and commodities declined.
– 9 of 11 sectors advanced with strong performance from Financials and Utilities. Value stocks outperformed.
– No follow through on China’s stimulus announcement with China’s stock market declining for the second week in a row.
– Oil prices fell sharply, and Gold soared to another new all-time high. Silver prices set a new 10 year high.
Market Outlook – Mag-Seven looks vulnerable
%
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%