Weekly Risk Report 10/22/2018

Another confusing week managed to draw down three of the four Market Risk Indicator components to lower risk levels. One rose slightly. Overall the MRI dropped another two points to 28% indicated cash reserve for diversified stock portfolios. The MRI Oscillator shows minus 4 this week indicating continued downward risk pressure.

Overall, the MRI is headed back toward its median value of 26

% cash while the four components show:

  • Relative Valuation – At median value
  • Speculation – Below median
  • Divergence – Below median
  • IPO Activity – slightly Above median

Like the expression, “No Pain, No Gain” it appears we have had to suffer a bit of discomfort to get the MRI back toward a more average risk profile. While this hardly means ‘no risk’ it does show a healthy reduction in the overall profile.

Best regards,

Tom Veale