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World Wrap

World Wrap

– Global equities and fixed income climbed, while Commodities declined on lower oil prices.
– The advance was broad during the holiday shortened week with all factors, sectors and styles moving higher.
– China was the worst performing country in the world last week, declining 3.1% and weighing on Emerging market indices.
– Long-term Treasuries rallied causing the yield curve inversion to fall to new lows.

World Wrap

World Wrap

– Prices for US Equities and Commodities went lower. Oil prices fell more than 9% over the week.
– Traditional defensive sectors Healthcare, Staples, and Utilities all rallied. All other sectors declined.
– Both developed and emerging international stocks moved up. China advanced 4.2%.
– Yields fell on Treasuries with longer maturities, making the yield curve inversion even steeper.

World Wrap

World Wrap

– Seasonably strong period for stocks starts right on cue with a substantial rally for equities globally. The dollar fell by more than 4%.
– Growth stocks outperformed – Tech stocks were up more than 10% on the week.
– Developed markets outperformed US on strength in European markets and Japan.
– Bitcoin’s bear market took another leg down, declining 20%, on news of the failure of popular crypto exchange FTX.

World Wrap

World Wrap

– US Risk assets sold off as Fed dashed hopes for a pivot on rate hikes. International equities and commodities advanced.
– Materials, Industrials, and Energy stocks moved higher. Tech stocks sold off sharply.
– Emerging markets were up almost 5% for the week on a 11% one week bear market rally in China.
– Federal Reserve increased the Fed Funds Rate to 4%, the highest level since January 2008.

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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%