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World Wrap

World Wrap

– Global equities were flat, while Commodities advanced and prices on US Treasuries declined.
– Nine of eleven sectors moved higher, but declines in Technology and Consumer Discretion stocks were enough to hold back cap-weighted indices.
– Latin American stocks put in another strong performance, up more than 5% for the week.
– Crude Oil bounced more than 5% during the week, but prices are still down more than 25% from June highs.

World Wrap

World Wrap

– Jerome Powell’s hawkish comments sent global financial markets lower, while Treasuries rallied. Commodities also moved higher on a rebound in oil prices.
– Dow Transports finished the week flat, and Energy was the only sector to close in the green rebounding 1.8% after an 8% decline the week prior.
– While volatile, Latin American stocks have been a safe haven in 2023, with MSCI Latin America Index returning more than 5% ytd.
– The Federal Reserve raised the Fed Funds rate target to 4.5%, the highest rate in more than 15 years.

World Wrap

World Wrap

– US Equities and Commodities declined while International Equities and US Treasuries were flat for the week.
– All key factors, styles and sectors declined. Energy stocks were hit hardest – declining more than 8%.
– Emerging market equities squeaked out a gain, boosted by a 6.8% one week return from China.
– Crude oil prices corrected, finishing the week 11.1% lower.

World Wrap

World Wrap

– Global financial assets, both fixed income and equities, rallied. Commodities moved higher as well.
– Value stocks struggled on weakness in Energy stocks and Financials.
– Sharp rebound in Emerging market stocks as China rallied almost 9% in a week.
– Lumber prices are down 52% ytd and have fallen to pre-Covid levels – signs of a softening housing market.

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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%