Market Risk Report as of April 25, 2022

From Chief Investment Officer Tom Veale,

Some emotional difficulties have been surfacing for investors. No clear path or trend seems to exist and that has caused some market participants to react poorly. This brings to mind:

Execute your Plan
Set the plan in motion; know that it takes time for realization. Follow the plan without hesitation allowing the goals to be realized. The strategy is sound so execution is all that is required.
a) Buy when the plan says
b) Sell when the plan says
c) Be very patient when no buy or sell signals are being generated

T. Veale – 1998 Review

At SignalPoint we do have a plan that has been in place since the start of our investment advisory. We maintain our discipline through thick and thin. The purpose of the plan is to maintain appropriate balance between investment and investment risk. Our strategy is dynamic and adjusts to the changing conditions of the market place.

Here’s how the latest Market Risk Indicator histogram looks:

General market risk has remained above median value and has been stubborn about retreating. SignalPoint has been prepared for current conditions and has been slowly adjusting the Equity/Cash ratio of our various Portfolios. This is in accord with the Investment Plan that has been in place since our company’s inception. Our Portfolio Strategies are built on solid foundations and our Management Process keeps these strategies aligned with market conditions.
Please feel free to contact us with any questions that you may have at this time.
Best regards,
Tom Veale
This week’s MRI review shows a one point rise to 38. The MRI Oscillator shows +4 indicating modest upward risk pressure. Most of that increased pressure comes from our Divergence Index. That component measures investor sentiment by looking at both the number of new 52 week highs and lows occurring during the previous week’s trading. This week saw the Divergence component jump back into its more bearish range with investor confusion being more evident. We are watching the market indicators we use for the MRI very closely.

Complements of Franklin/Templeton here’s their update as of last Friday’s close:

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