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World Wrap

World Wrap

– All major asset classes declined for the week. Commodities were hit hardest on a 6.6% decline in oil.
– No safe havens as every style, sector, and factor struggled.
– International declines were broad with only 5 of 44 countries moving higher. Germany was one of the five.
– Another strong week for the US Dollar as it rallied to a new 20 year high. The Euro closed below parity with the dollar again, falling to a new 15yr low.

World Wrap

World Wrap

– Commodities rallied, but financial assets declined for the week after Jerome Powell’s hawkish speech on Friday at Jackson Hole
– Energy stocks stood out – advancing 4.3% as all other factors, sectors, and styles struggled.
– Emerging markets climbed 0.5% on strong performance from China and Latin America.
– The US Dollar climbed to a 20-year high last week, and the Euro fell below parity with the dollar for the first time since November 2002.

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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%