{"id":1966,"date":"2020-06-08T00:00:00","date_gmt":"2020-06-08T00:00:00","guid":{"rendered":"https:\/\/www.signalpointinvest.com\/market-risk-report-as-of-june-8-2020\/"},"modified":"2023-02-22T14:36:20","modified_gmt":"2023-02-22T14:36:20","slug":"market-risk-report-as-of-june-8-2020","status":"publish","type":"post","link":"https:\/\/www.signalpointinvest.com\/market-risk-report-as-of-june-8-2020\/","title":{"rendered":"Market Risk Report as of June 8, 2020"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">From Chief Investment Officer Tom Veale,<br \/>\n<\/span><span style=\"font-weight: 400;\">\u201cFor 12 weeks we\u2019ve had the Market Risk Indicator (MRI) at or below the Bullish threshold. Rising to 19 this week the MRI is up 2 points this week and is now approaching its neutral range. The MRI Oscillator comes in at +11 showing extreme upward risk pressure. The opportunistic buying period of the last 13 weeks seems to have run its course. While the MRI is still far from its bearish territory, it shows nicely how the indicator tracked and suggested appropriate thinking relative to market risk while bullish.\u201d<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-1184\" src=\"https:\/\/www.signalpointinvest.com\/wp-content\/uploads\/2021\/10\/Tom-Veale-Market-Risk-Report-6.8.2020.gif\" alt=\"\" width=\"816\" height=\"431\" \/><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThree of the four MRI components rose with last week\u2019s market advance. Only the Divergence Index remains bullish. The other three indicators are in their neutral range. The Speculation Index resurfaces to its neutral range for the first time since March 13<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> when it first became bullish. The MRI as well as the individual index components are set with bullish and bearish thresholds at one standard deviation. This is the 12<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> week of the MRI being bullish.\u201d<\/span><\/p>\n<p>&nbsp;<\/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)<\/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.<\/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<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Chief Investment Officer Tom Veale, \u201cFor 12 weeks we\u2019ve had the Market Risk Indicator (MRI) at or below the Bullish threshold. Rising to 19 this week the MRI is up 2 points this week and is now approaching its neutral range. The MRI Oscillator comes in at +11 showing extreme upward risk pressure. The [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1788,"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\/1966"}],"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=1966"}],"version-history":[{"count":1,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts\/1966\/revisions"}],"predecessor-version":[{"id":2132,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/posts\/1966\/revisions\/2132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/media\/1788"}],"wp:attachment":[{"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/media?parent=1966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/categories?post=1966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.signalpointinvest.com\/wp-json\/wp\/v2\/tags?post=1966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}