Market Risk Report as of November 21, 2022

From Chief Investment Officer Tom Veale,

“While the SignalPoint Market Risk Indicator didn’t rise this week one key component, Relative Valuation, did. Rising market prices without rising income tends to push this key risk measure upward. Here’s how the MRI looks for November 21st, 2022.

There continues to be very low speculative activity in the broader index presented by Value Line’s 1700 stocks. The concentration of money flow continues into energy stocks through last week’s end. Overall confusion about market direction still shows in our Divergence Index. Heading into the Thanksgiving weekend we are already seeing headlines about the ‘next’ FED interest rate change scheduled for December. Some are saying an additional 0.5% will be added while others still feel an additional 0.75% should be expected. Our view is inflationary pressures are starting to respond to the previous rate hikes and we may be nearing the peak inflation rate.
 
Enjoy your Thanksgiving Holiday,
Tom Veale
 
The Relative Valuation Index remains in its cautionary range along with our Divergence Index this week. The Speculation Index is borderline proactive right now. The New Issues Index is neutral. Overall, the Market Risk Indicator is unchanged at 32 with an MRI Oscillator of +4 showing mild upward risk pressure.”

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