– Global financial assets rebounded sharply during the first week of November. Commodities sold off on lower oil prices.
– A sea of green – every style, factor and sector climbed. Small cap value was the biggest winner, rallying almost 9%.
– Internationally, 43 of 44 countries that we monitor advanced. Mexico is having a good year – up 9.3% last week and up more than 21% year-to-date.
– Yields fell globally after Powell’s press conference and a weaker than expected jobs report as markets again bet that the Fed is done.
– A more traditional risk off week as global stocks and commodities declined while yields on global fixed income fell.
– Utilities was the only sector to move higher. Large Growth was the biggest style box underperformer.
– Emerging markets outperformed Developed markets with declines being mitigated by a 2.5% rebound in Chinese equities.
– Bitcoin rallied 14% amid continued speculation surrounding a possible Bitcoin spot ETF.
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%