– A quintessential example of a risk-off week. US Treasuries rallied while other risk assets sold off. Commodities were down 3.9%.
– Value held up better than growth. Consumer Staples closed up for the week – the only sector to do so.
– After solid performance for much of the last quarter, China was the second worst performing country last week (-7.9%) and was a drag on emerging markets.
– Natural gas prices rose 16.7% and have nearly doubled in 2022.
– Global equities climbed. Commodities, Treasuries, and interest rate sensitive assets like Real Estate declined.
– It was a strong weak for Large Cap growth & Tech stocks. Meanwhile – Value, Energy, & High yield stocks struggled.
– International equities advanced, but it wasn’t a broad move. Twenty-one of the 45 countries we track declined week over week.
– The US Dollar jumped 1.8% and is now up 11.5% year to date.
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%