{"id":1836,"date":"2019-08-12T00:00:00","date_gmt":"2019-08-12T00:00:00","guid":{"rendered":"https:\/\/www.signalpointinvest.com\/market-risk-report-as-of-august-12-2019\/"},"modified":"2023-02-22T14:36:21","modified_gmt":"2023-02-22T14:36:21","slug":"market-risk-report-as-of-august-12-2019","status":"publish","type":"post","link":"https:\/\/www.signalpointinvest.com\/market-risk-report-as-of-august-12-2019\/","title":{"rendered":"Market Risk Report as of August 12, 2019"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">From Chief Investment Officer Tom Veale,<br \/>\n<\/span><span style=\"font-weight: 400;\">\u201cLast week\u2019s trading probably didn\u2019t do a lot to inspire confidence for investors. The indexes traded off for the week while the statistics shifted in the wind. SignalPoint\u2019s Market Risk Indicator (MRI) remained at 28% suggested cash for long term diversified portfolios while the MRI Oscillator dropped to zero showing no upward or downward pressure on risk. Three of the four components dropped in risk profile during the week and one remained unchanged.\u201d<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-918\" src=\"https:\/\/www.signalpointinvest.com\/wp-content\/uploads\/2021\/10\/Tom-Veale-Market-Risk-Report-8.12.2019.gif\" alt=\"\" width=\"808\" height=\"424\" \/><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSignalPoint\u2019s Relative Valuation Index dropped nicely toward the bottom if its neutral range as did the Speculation Index. Both are quite close to their bullish thresholds. In the meantime the Divergence Index remains bearish but improved slightly from a week ago. This is the 4<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> week of bearishness for that component.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The average yield shown in Value Line after last week\u2019s trading rose to 2.3% for stocks that pay dividends. That\u2019s slightly better than the 2.033% coupon yield for the 13 Week Treasury rate at the close last Friday. This would indicate that dividend oriented stocks and funds may offer some value relative to the \u201cRisk Free Rate of Return\u201d of short term treasuries.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Market Risk Indicator is an assessment tool that serves as a guide through all markets as to the prudent use of a liquid cash cushion. It helps determine an approximation of the amount of cash reserve relative to a diversified equity portfolio. (this is depicted by the graph above)<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">At times of high risk in the market, the MRI will suggest a higher level of cash reserve. At times of low market risk, the MRI will suggest a lower level of cash reserve. This investment process helps to measure and manage market risk.<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Because of this, the fear associated with the uncertainty of the market can be replaced by the security of a sound investment strategy.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Chief Investment Officer Tom Veale, \u201cLast week\u2019s trading probably didn\u2019t do a lot to inspire confidence for investors. The indexes traded off for the week while the statistics shifted in the wind. SignalPoint\u2019s Market Risk Indicator (MRI) remained at 28% suggested cash for long term diversified portfolios while the MRI Oscillator dropped to zero [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1835,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts\/1836"}],"collection":[{"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/comments?post=1836"}],"version-history":[{"count":1,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts\/1836\/revisions"}],"predecessor-version":[{"id":2173,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts\/1836\/revisions\/2173"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/media\/1835"}],"wp:attachment":[{"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/media?parent=1836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/categories?post=1836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/tags?post=1836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}