Research
World Wrap
– Prices on all key global asset classes fell during the week. US Stocks and Real Estate were hardest hit.
– All sectors, styles, and factors declined. Large Cap Growth, driven by Tech stock performance, fared best.
– Emerging markets held up well in a down week – led by India, China, and Taiwan.
– Gold shot to another new all time high, and the US dollar was up a whopping 1.7% – surging to the highest level since November.
Market Outlook – Stimulus by Wealth Effect
World Wrap
– Commodities rallied, but they were the exception. Global equites and fixed income declined.
– Momentum and Energy stocks were a safe haven in week where declines were pervasive.
– Emerging markets climbed on strength in China, India, and Mexico.
– Gold spiked to another all-time high, and Oil prices climbed above $87 per barrel.
Market Outlook – Bullishness among newsletter writers is pervasive
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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 98.1%
- Monetary 30.4%
- Valuation 98.7%
- Trend 25.9%