From Chief Investment Officer Tom Veale,
There can be two ways to view last Friday’s close.
1) The Dow was off more than 1000 points!
2) The Dow dropped about 3% on Friday.
While both are correct, there is greater ‘headline’ effect with #1. Neither are great news. However, Mr. Powell’s comments have long been the source for headline trading. For those with a longer investing time horizon than a single heartbeat last Friday will just become another statistic for the history books.
Last week’s consolidation did help take some pressure off the upward movement of SignalPoint’s Market Risk Indicator. Three of the four components moved downward to lower risk levels on the trading. One remained unchanged. Overall, here’s how it looks with a 3 year perspective: