From Chief Investment Officer Tom Veale,
The markets had another good week last week and managed to do so without pushing our Market Risk Indicator any higher. It remains unchanged from the previous week. Two risk components rose and two fell in profile giving a balanced review from the markets.
The 13 Week Treasury is now showing a yield of 5.409% giving some serious competition to the stock market’s average dividends. With the inflation rate declining slightly we see the short end of the yield curve approaching some balance against loss of purchasing power. While the FED may have been a bit slow to start its fight to control inflation, the rapid advance of interest rates from their historic lows seems to be having the desired effect.
The MRI comes in at 31 again this week, unchanged. The MRI Oscillator remains tame with a +2 value indicating only slight upward risk pressure. Two components remain neutral with one cautious and one proactive this week.