– Financial markets were a sea of red this week with all asset classes declining.
– All sectors, styles, and factors declined. Dow Transports declined more than 8%.
– Middle Eastern equities and Italy were the only two international equity markets to see higher prices.
– The US dollar rallied, as did silver prices. Non-commercial futures positioning in silver is net short for the first time since 2019.
– Global stocks rallied, led by a strong snap back for US equities, but the fear of missing out was absent from international equities.
– Growth and Tech stocks outperformed while Energy stocks lagged considerably for the week.
– Developed markets closed in the green, but emerging equities were down slightly.
– The dollar gave up some gains, and fixed income markets declined with the notable exception of a rally in high yield corporate bonds.
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%