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World Wrap

World Wrap

– US Equities rebounded on a narrow rally. Commodity prices also moved higher.
– Tech and Consumer Discretion stocks drove broad indices higher. Average sector performance beyond those two was 0.0% for the week.
– A rally in Latin American stocks pushed emerging market indices higher. Developed markets declined slightly.
– Precious metals and the US dollar rallied. US Dollar rally stopped just short of making its first higher high of 2023.

World Wrap

World Wrap

– No asset class was spared last week – with every key asset class registering declines.
– All sectors, styles, and factors went lower. Tech stocks fared the best.
– International equity declines were broad with equity markets declining in 42 of 44 countries.
– Sell-off in Treasuries pushed yields on the 30Y Treasury to 12-year highs. Mortgage rates climbed to 20-year highs.

World Wrap

World Wrap

– Another down week for global equities and fixed income and an up week for Commodities.
– Sharp bounce from Energy stocks. In three short weeks, Energy has gone from being the worst-performing sector YTD to the middle of the pack.
– China continues to struggle – down 3.7% – continuing to weigh on Emerging market indices.
– The US Dollar was up sharply. The dollar bottomed when the NASDAQ peaked in July and has climbed in lockstep with the weakness of Tech stocks ever since.

World Wrap

World Wrap

– Global equities closed the week more than 2% lower. Higher oil prices drove Commodity indices higher.
– Energy was the only advancing sector. Tech stocks and Utilities were off by more than 4% for the week.
– Stock market decline was broad globally, dragging down 38 of 44 countries.
– Fitch downgrade of US Credit rating sent Treasury yields to their highest levels of 2023 and within 10 basis points of the Oct 2022 peak.

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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%