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World Wrap

World Wrap

– US Equities shook off headlines full of bank troubles and moved higher. International equities and commodities fell.
– Small and mid-cap stocks sold off sharply, as did Energy stocks and Financials, while Tech stocks and Large Caps advanced.
– Developed markets declined on weakness in European stocks. Emerging markets fared better as China was the second best performing country in the world.
– Treasuries and Gold were safe havens during a volatile week. Bitcoin rebounded sharply, climbing more than 30% for the week.

World Wrap

World Wrap

– Difficult week for US Equities, with the S&P 500 declining 4.5%. Treasuries were a safe haven.
– All sectors declined, led by an 8.5% decline in Financials on headlines of Silicon Valley Bank’s failure.
– A sharp 7.25% drop in China’s equity market has caused Emerging Markets to give up all their 2023 gains.
– The traditional flight to safety assets, US Treasuries and Gold, advanced in a week dominated by declining asset prices.

World Wrap

World Wrap

– Global financial assets bounced back last week after three consecutive weeks of declines.
– The broad market may be up, but four of eleven sectors are still down year to date.
– Deposits at US banks declined last year for the first time since 1948. High yields on T-Bills are encouraging savers to look elsewhere.
– Natural Gas rallied sharply by 18.1% but is still off by more than 28% since the start of the year.

World Wrap

World Wrap

– Global equities closed lower for the third week in a row.
– Energy was the only US sector, style, or factor to close in the green.
– China fell 4.1% last week, pushing it into correction territory. China has fallen more than 13% from January highs.
– Stronger than expected PCE inflation pushed yields on the 2Yr Treasury to 15-year highs.

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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%