Market Risk Report as of January 31, 2022

From Chief Investment Officer Tom Veale,

“In Turks & Caicos the weather was fine while I was there. It doesn’t appear it was a nice on Wall Street, however. All of the volatility for the last two weeks has had a positive effect on market risk by removing some of the excess.

Most of SignalPoint’s Market Risk Indicator components dropped in risk with our Speculation Index actually turning in a bullish signal for the first time since June of 2020. Stubborn P/Es have kept our Relative Valuation component in its less favorable level and still well above its median. This is true for the IPO/New Issues Index as well with it remaining well above its median value and unfavorable.
A variety of component buy targets were reached over the last 10 trading days. We’ve added minimum order allotments to several of our Strategies over that time. Reserves of Cash are still very good relative to the markets’ current conditions. We remain vigilant waiting for the markets to come to our target prices rather than attempting to out-guess where prices might go next.
Best regards,
Tom Veale
The MRI fell to 37 with the recent market drop. While still above its neutral range it is down three points in the last two weeks. The MRI Oscillator is minus 5 indicating strong downward risk pressure.”

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