Weekly Market Timing Update - 2018/34
Bond market - Global bond risk changes to low risk
The Global Bond Market Risk Index (GBMRI) changes from a medium risk to a low risk reading. The GBMRI sinks to 38%. Last week the GBMRI reached a level of 49% (medium risk).
The Regional Bond Market Risk Sub Index (RBMRSI) for the Asia-Pacific region is showing the best performance with a low risk reading of 25%. Last week this index was at 43% (medium risk).
On the contrary, the RBMRSI for Latin America is showing the least positive performance with a high risk reading of 100%. Last week this index was at 100% (high risk).
Our bond market timing strategy is issuing a new buy signal for the Canadian government bond market.
Stock market - Global stock risk changes to medium risk
The Global Stock Market Risk Index (GSMRI) changes from a high risk to a medium risk reading. The GSMRI decreases to 58%. Last week the GSMRI reached a high risk level of 68%.
The Regional Stock Market Risk Sub Index (RSMRSI) for the US, Canada and Western Europe is showing the best performance, indicating a medium risk reading of 55%. Last week this index was at 68% (high risk).
On the contrary, the RSMRSI for Eastern Europe is indicating the least positive reading at a medium risk level of 58%. Last week this index was at 68% (high risk).
All other Regional Stock Market Risk Sub Indices are showing medium risk readings.
US stock market risk remains at a medium risk level of 48% (last week: 57%). US tech stock risk changes from a high risk to a medium risk reading of 49% (last week: 62%).
Our stock market timing strategy is still favoring investments in global stock markets.
Foreign exchange (FX) - US Dollar risk remains at low risk
Please note that a risk index level equal or above 60% is indicating a rather high-risk and unfavorable market environment.
More information our intuitive risk indices and how they work at Market Risk Index - How it works.