From Chief Investment Officer Tom Veale,
“We’re starting to see market risk taper off – and without too much drama so far. Our Market Risk Indicator has been stubbornly high for quite some time but we’re seeing some relief inside it. Two of the MRI’s components are at or below their median values while two others are still more than one standard deviation above median value. Those two, however, appear to be reverting to mean slightly.
The plateau the S&P 500 is forming has been ongoing for about two months now. It appears to be a healthy consolidation so far.
The performance of our various portfolio strategies has done well while building and maintaining a healthy reserve of cash. Monitoring both risk and reserves for that risk is a continuous process.”