Market Risk Report as of October 31, 2022

Tom Veale
October 31, 2022

From Chief Investment Officer Tom Veale,

“Investors are feeling confused with market action in recent weeks. Yes, markets are rising but investors are yet to embrace this action as being a long term trend. SignalPoint’s MRI Divergence Index shows this poor consensus with a rise well above its median value.

Improvement in the indexes will take time to show up in investors’ statements. We’re watching for signs of better consensus. In light of this and other components of SignalPoint’s Market Risk Indicator we see some upward market risk pressure. Overall, the MRI continues to be slightly above its median value as seen here:

Should the markets continue to recover from their September lows we will be watching for opportunities to rebuild our cash reserves.

Best regards,
Tom Veale

Our MRI rose one point to 30 this week with the MRI Oscillator increasing to +5 (modest upward risk pressure). Two components (Relative Valuation and Divergence) are currently more than a standard deviation above their median values while two remain neutral.”

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