More Deterioration

Over the past week most of my core market health indicators fell. This is a bit discouraging in the face of rising market indexes. Only the measures of risk are currently positive. The risk indicators show a market that is drifting under the surface rather than exhibiting underlying strength. As a result, it won’t take much weakness to move them into negative territory.

There are no changes to the core portfolio allocations this week and the overall condition of the other categories suggest that no changes will be made next week either. Enjoy the Holidays!

141226markethealth

 

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Comments

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Tiffany Jackson 4 years ago Member's comment

What do you think is the cause of this drop?

Blair Jensen 4 years ago Author's comment

It looks like fear of a slowing world economy pushing money to safety. Mega caps and government bonds are too strong for a "healthy" rally. Performance from junk bonds show an aversion to risk as well. I get the sense that people are hunkering down into the end of the year over concern of what 2015 will bring.