Research

Q3 2022 World Wrap

Q3 2022 World Wrap

– All key asset classes declined, and stocks set new lows in the third quarter of 2022.
– Energy and Consumer Discretion stocks increased in Q3, but all other sectors, styles and factors saw lower prices.
– Latin American stocks advanced 3.7% in Q3 moving into positive territory for the year. Brazil is up 11.8% ytd.
– The US Dollar shot to 20 year highs, climbing by 7.1% in Q3. The dollar is up 16.8% ytd.

World Wrap

World Wrap

– A sea of red for all asset class returns for a second straight week after the Fed raised rates by another 75bps.
– All sectors, styles, and factors declined. Energy stocks were the worst performing sector, declining 9%.
– Brazil and Egypt were the only two countries with stock markets advancing.
– Bull market in the US Dollar continues – the dollar was up whopping 3% for the week and has climbed more than 20% in the last 12 months.

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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 51.8% 51.8%
  • Monetary 69.2% 69.2%
  • Valuation 91.4% 91.4%
  • Trend 88.2% 88.2%