Weekly Risk Report 1/18/2010
Our market risk model has changed direction from a slow decline to the beginning of a slow rise. Overall risk remains at the low end of its historical average range. The stock market gains of late 2009 and the first two weeks of the new year display a moderate return of speculative buying. The recent gains have been more sector specific than over the past year. This sector differentiation is showing up both in the U.S. and in the international markets. Having sector specific components in our portfolios allows us to monitor this activity and respond.
We continue to watch the U.S. Dollar against many non U.S. currencies, short term interest rates, market earnings yield and many other factors.
