From Chief Investment Officer Tom Veale,
My job would be so much easier if Markets behaved more like clockworks than accumulation of random events. Certainly the concept of Reversion to the Mean is known and understood by market participants but why then do markets drift so far from Mean time and again? It’s been the SignalPoint Market Risk Indicator’s job to watch over various aspects of investing behavior and give us a summary of the drift.
The MRI remains flat at 30 again this week even as three of the components rose in their own risk ranges. Three are neutral and just Relative Valuation remains in its own bearish territory. The MRI Oscillator comes in at +3 indicating slight upward risk pressure on the markets.