Risk Report 08/04/2008
Another week's gone by and there has been little change in the markets overall. However, they've sure been jumpy. It's pretty rare in the last 5 years to see moves of 2.5% either up or down on a daily basis, but it's been nearly "common" in recent times. This volatility is driving our Model nicely..
Risk remains basically unchanged from a week ago. Relative Valuation risk profile rose slightly on the change in the 13 Week Treasury note yield. The rest of the components were down slightly this week indicating reduced risk. The Energy sleeve is starting to use up some of the cash it stockpiled over the last few years. Several other sleeves are also in the "buy" mode. The market's technical indicators are starting to look like there's finally some bottoming going on, but remains quite nervous. The monthly statements will show activity that is pro-active for the clients' accounts and this should help soothe some nerves, too.
