Market Risk Report as of March 20, 2023

Tom Veale
March 20, 2023

From Chief Investment Officer Tom Veale,

Scanning the financial headlines this report must seem pretty boring by comparison. Bank Run Hysterics are blaring on Page One while the bottom of the page is saying there’s also a run on physical gold. It seems there’s no lubrication for the Gut Wrench. This week sees the Market Risk Indicator dropping as three of the components came down in risk profile. The last one remained nearly unchanged.

Recent declines in stock prices has had the effect of lowering Price to Earnings as well as showing speculative cash flow backing away from common stocks. Following those two movements we find investor consensus increasing on the darker side which we interpret as being positive for future stock prices.

We continue to closely monitor our Investment Strategies for opportunities to effectively build share inventories where prices have declined to our targets.

Best regards,
Tom Veale

At 32 for the MRI it’s hardly showing bargains in the market place. But it is down a point from last week. Further, the MRI Oscillator is negative 5 showing strong reduction in risk profile. Two components are neutral right now while one (Relative Valuation) remains higher than we’d like and the last shows continuing consolidation in the highly speculative IPO/New Issues area.

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