Research
World Wrap
– Prices for global financial assets were mixed, but international equities outperformed.
– US cap-weighted equities advanced, but only 2 of 9 style boxes and 3 of 11 sectors climbed.
– Strong week for international equities and the largest one week gain for emerging markets since October.
– The price of Bitcoin breached $100k for the first time. Meanwhile, gold has struggled since the election.
Market Outlook – Leverage Frenzy Amid Historic Valuations
World Wrap
– Global financial assets rallied, and commodities fell on lower crude oil prices.
– Broad rally among styles, sectors, and factors. – Energy stocks were the only holdout, declining for the week.
– Emerging markets declined, held back by declines in parts of Asia and Latin America.
– Sharp halt to the dollar’s recent ascent, as it declined 1.7%, the sharpest weekly decline since its selloff in the summer.
Market Outlook – Consumers have never been so bullish.
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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 95.4%
- Monetary 70.6%
- Valuation 100.0%
- Trend 56.1%