– Global stocks advanced on the shortened holiday week. Commodities were off modestly on another weekly decline in crude oil prices.
– All sectors, styles, and factors moved higher. Unlike the prior week, small caps and value stocks lagged.
– Developed markets outperformed. China was up 1.3%, helping mask a challenging week for Emerging market equities.
– Precious Metals and Bitcoin experienced good performance. Prices on longer duration Treasuries were off slightly.
– Global stocks and bonds were up across the board. Commodities were mixed – gains in metals offset falling crude oil.
– Broad based rally among sectors, styles, and factors. Value stocks and small cap stocks were outperformers.
– Both developed and emerging markets outperformed US stocks last week. 41 of 45 countries we track rallied.
– The dollar sold off, and precious metals rallied alongside prices in US Treasuries.
– Global stocks and fixed income were mixed for the week. Commodity prices declined.
– Large Cap, particularly Large Cap Growth, was the only row in the style box to advance, driven by the strength of Tech stocks.
– Develop markets fell, but Emerging markets were flat on strength in India, Taiwan, and Brazil
– Bitcoin climbed more than 7%, and crude oil prices have fallen to the lowest level since July.
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 87.4% 87.4%
- Monetary 40.5% 40.5%
- Valuation 95.8% 95.8%
- Trend 55.4% 55.4%