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Q2 2022 World Wrap

Q2 2022 World Wrap

– Global equities and fixed income declined in the second quarter. Commodities moved higher by 2% on the strength of crude oil.
– All sectors styles and factors declined in the second quarter. Energy was strong up until June, when the sector crashed by more than 22%.
– China shrugged off global market weakness and advanced more than 3% during the quarter. It was one of only two countries to see higher stock prices in Q2.
– Crude oil rallied 10% during the quarter – the Dollar was up 6.5% – and Bitcoin plunged by nearly 60%.

World Wrap

World Wrap

– Strong bounce in Global Equities and US Treasuries as commodities sold off.
– Energy closed the week in the red. All other sectors, styles, and factors advanced.
– Despite strong performance from China, the emerging markets rally was weak, lagging developed markets.
– Broad commodity indices were weak, but oil prices only declined by 0.3%.

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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%