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World Wrap

World Wrap

– Global equities sank, and commodities bounced. April was the worst month for NASDAQ since 2008.
– Nowhere to hide in US Equities last week as all factors, styles, and sectors declined.
– A 5.1% bounce in China kept Emerging market indices flat, offsetting declines elsewhere.
– The dollar moved sharply higher by 1.7% and is now up more than 7% year to date.

World Wrap

World Wrap

– Risk assets declined. Real Estate was an exception, climbing more than 1% for the week.
– For the first time this month, Energy stocks underperformed Tech stocks on the downside.
– Emerging markets fell by 3.3%, driven by a 6.8% weekly decline in China. The bear market in China began in February 2021.
– Oil prices decline 4%, marking the second lower high in crude since prices topped above $120/bbl. in early March.

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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%