Market Risk Report as of September 6, 2021

From Chief Investment Officer Tom Veale,

“The first week of September ended with the major stock indexes mixed. The Dow 30 Industrials closed flat while the S&P 500 and Nasdaq Composite both rose. Market breadth was a bit less robust than previous weeks. Still, we now have all business sectors of the S&P 500 up double digits for the year to date

The SignalPoint Market Risk Indicator continued to edge downward in risk profile. Two components rose slightly while two declined. While still above the median value since 1982 the trend has been one of further relaxation.
There has been discussion at the Federal Reserve that indicates the dismal yield of U.S. Treasuries might be allowed to rise “sooner than later.” However, no signs of improvement yet show up in the yield curve.
The current Price/Earnings ratio of the 1700 stocks in Value Line sits at 19.1 with its yield at 1.8%/yr. It is still a guess as to what the P/E ratio of the additional 1850 New Issues that have appeared in the latest 18 months might be. We guess there is no dividend from most of those new stocks.
Remaining vigilant monitoring profit opportunities, dividend capture and cash insurance for our portfolio strategies is still our top priority.
Best regards,
Tom Veale
Our Market Risk Indicator comes in at 36 this week, down a point from recent weeks. The MRI Oscillator is zero, showing no particular trend in risk.”

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