Research

World Wrap

World Wrap

– Nice gains for global equities, modest gains for Global Fixed Income, and losses for Commodities last week.
– All sectors and factors advanced, but small cap stocks struggled. Every small cap style box declined.
– 34 of 45 countries that we follow advanced. China’s equity market has had strong performance two weeks in a row.
– REITs are struggling across the board. They lagged this week despite a rally in bonds. They are the worst performing key asset class year-to-date.

World Wrap

World Wrap

– Mixed performance from key asset classes. International stocks bounced, while US stocks were the worst performing asset class.
– US equities down week was concentrated in Tech and Large Caps. Seven of nine style boxes were up, as were seven of the 11 sectors.
– Broad advance in international markets with 80% of countries advancing. China rallied 3.7%.
– Stronger than expected inflation sent prices on US Treasuries lower. The yield on the 2Yr Treasury has climbed 50 basis points in the last month to 4.6%.

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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% 98.1%
  • Monetary 33.4% 33.4%
  • Valuation 97.6% 97.6%
  • Trend 43.1% 43.1%