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Weekly Market Risk Assessment from SignalPoint Asset Management

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Weekly Market Risk Assessment from SignalPoint Asset Management

 

This week the market Risk Indicator stays at 30% suggested cash for diversified stock holdings. The MRI Oscillator is at +2 indicating slightly increased upward risk pressure. Three of the four MRI components rose in risk profile this week but all remain neutral as does the overall value. However, Relative Valuation remains very close to its bearish threshold.

 

If the Relative Valuation component is correct, it says that essentially everything needs to go right to maintain the current markets’ lofty indexes. It’s not that it can’t rise from here but that upward potential is quite limited compared to other times.

 

The 13 Week Treasury Coupon rate this week is about as close to 1% as it can get at 0.996% yield. While this helps money market funds it is adding to Relative Valuation’s market concerns. Other MRI components are currently showing less concern. With last week’s Tech sell-off we’re seeing further sector separation and/or rotation. We will continue to monitor these events closely.

 

Tom Veale

Chief Investment Officer

June 14, 2017

 

SignalPoint Asset Management, LLC
Office Hours: 8:00 am—4:30 pm Monday—Friday
1201 E. Walnut Street, Springfield, MO 65802
Phone: 877.769.9980