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World Wrap

World Wrap

– US Equities and Commodities declined. Foreign stocks and prices on US Treasuries moved higher.
– Value stocks were hit hardest led by a 5.8% decline in Energy stocks. Technology stocks still managed to have a positive return.
– The Fed increased rates by 0.25 percent last week, it’s the 10th increase in the rate by the Fed in a little over a year.
– Yield Curve inversion worsened, becoming the second most severe inversion in over a century.

World Wrap

World Wrap

– US Financial assets climbed. International stocks were flat, and Commodities declined.
– Narrow advance last week as Large Cap stocks drove cap-weighted indices higher. All styles of Mid and Small Caps closed the week in the red.
– European stocks, both developed and emergin, are dominating global equity markets thus far in 2023, closing higher again last week.
– Long duration Treasuries rallied, and the yield curve inversion hit new lows. 2023’s inversion is close to taking the title for the 2nd largest inversion in over 100 years.

World Wrap

World Wrap

– Global equities, Treasuries, and Commodities all finished the week lower.
– Interest rate sensitive sectors Utilities, Real Estate and Financials experienced strong one week rallies.
– Emerging markets declined 2%, led by a 2.4% decline in Chinese equities.
– Bitcoin corrected more than 10% last week but is still up more than 60% year to date.

World Wrap

World Wrap

– International equities and Commodities outperformed. Commodities are on the cusp of positive returns for 2023.
– Sectors were mixed with declines in interest rate-sensitive sectors like Utilities and Real Estate. Technology stocks also declined.
– Developed Europe is the best-performing region in the world, driving international equities to outperformance.
– An inflationary week with strong performance from Commodities as US Treasuries and the US Dollar struggled.

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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%