Market Risk Report as of January 17, 2022

From Chief Investment Officer Tom Veale,

“The markets paused a bit last week after being on a New Year High for the first two weeks of 2022. The summary seen below is borrowed from Franklin/Templeton with appreciation.

We see a bit of change in leadership with the S&P 500 Sectors with last week’s trading. Info Technology lags while Energy leads as of Friday’s close. Further down please notice that Core CPI Inflation strips most income sources of value with negative real returns for now.
Our Market Risk Indicator remained unchanged with the activity.
Two components dropped in risk profile while two rose. The changes were small but still, three remain well above their long term median values. Value Line’s 1700 stock universe is averaging just 1.8% yield (for those stocks paying dividends) current and that is well below the long term average of 2.2%. Yield starved investors will need to sort through current dividend stocks to find solid premium yields for their portfolios.  
Best regards,
Tom Veale
The MRI comes in at 40 again this week with a +2 MRI Oscillator indicating just modest upside risk pressure.”

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