Market Risk Report as of February 21, 2022

Line graph going down with colored bar graphs in the background

From Chief Investment Officer Tom Veale,

“Vladimir P. seemed to want to add a new event to the Winter Olympics this year. Apparently wanting a metal of his own, he looks to go for the Gold (and whatever else he can grab) in the Ukraine. This has made the stock markets here and abroad rather nervous. We’ll see how this plays out as he Jumps and Spins for a Triple Sokal.

Recent market activity has two of SignalPoint’s MRI components dropping and two rising slightly in risk. The rapid rise from near zero annual interest for the 13 Week Treasury Coupon to this week’s 0.447%/Yr is putting some upward pressure on our Relative Valuation Index. At the same time, our Speculation Index remains very low and bullish. Overall, our MRI is seeing risk fall away slowly.

Some modest activity has been experienced in our income strategies on the buy side as bond fund premiums fall with rising interest rates. The 10 Year Treasury is now being sold with a 1.875%/Yr yield, up from the 1.375% it had for a very long time. More upward rate movement is expected later this year.
For the most part the various stock fund ETFs in our strategies remain in their individual holding patterns for now. Adequate reserves of cash are available to accomplish inventory additions should prices fall. With the markets closed for Presidents Day we’ll wait to see how the markets are feeling on Tuesday.
Best regards,
Tom Veale

The SignalPoint Market Risk indicator dropped one point to 34 this week and shows slight downward risk pressure with a -2 MRI Oscillator value”

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