Market Risk Report as of April 3, 2023

From Chief Investment Officer Tom Veale,

A steady risk signal again this week seems to show the recent bank situation has stabilized. Value Line’s median P/E for all stocks with earnings is also unchanged this week at 16.7 as is the 13 Week Treasury Coupon Rate at 4.81%/yr. This kept SignalPoint’s Relative Valuation Index unchanged as seen here:

The color coordinated border shows this Market Risk Indicator component to be in its Caution range. Two of the other components are neutral and the last is actually showing a bullish signal. So, the high and low ones cancel while the two middle ones float in their neutral ranges.

Overall, the MRI looks like this for the week:

It has risen a bit in concert with the rise in the S&P 500 Index. While still not in its ‘Caution’ range it has shown some of the stresses of the marketplace in recent times.

Q1 Earnings and opinions on future earnings will be controlling the market’s mood during the reporting period. The SignalPoint Process will respond to whatever direction the markets take in an appropriate fashion.

Best regards,

Tom Veale

The MRI comes in at 32 this week with a +1 MRI Oscillator showing very little upside risk pressure. As stated, one component each are Proactive and Cautious. The other two are neutrally positioned.

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