Research
![Market Outlook – Chasing Leverage](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20230714-Cypress-Market-Outlook-pdf.png)
Market Outlook – Chasing Leverage
![World Wrap](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20230710-World-Wrap-pdf.png)
World Wrap
– Global Equities and US Treasuries declined, and Commodities advanced on a rebound in crude oil futures.
– Six-month performance spread between the S&P 500 and the Dow is the second widest on record – all-time record was set in March 2000.
– China has fallen back into a bear market – speculation increasing about potential stimulus.
– Unemployment rate dropped to 3.6% – keeping pressure on the Fed to raise rates this month.
![Market Outlook – Another Case of the FOMOs](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20230707-Cypress-Market-Outlook-pdf.png)
Market Outlook – Another Case of the FOMOs
![Q2 2023 World Wrap](https://www.cypresscapital.com/wp-content/uploads/2023/07/2023_Q2-World-Wrap-pdf.png)
Q2 2023 World Wrap
– Q2 performance was muted for all asset classes except US Equities. US Equities boomed, carried on the shoulders of Large Cap Tech stocks.
– Incredibly narrow performance for a bull market this young. The bottom seven performing sectors are up only 1.0% on average.
– The second quarter crushed the China re-opening narrative. Their stock market fell almost 10%, now down more than 5% year-to-date.
– Spread between Corporate Bond Yields and US Treasury Bills finished the quarter at the lowest level since 1981.
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Market Risk Index
Market Risk Index scales from 0 to 100%. Higher readings correspond with higher risk markets. Scores below 25% are bullish. Scores between 25-75% are neutral, and scores above 75% are markets vulnerable to major drawdowns.
Model Category Readings (Percentiles)
- Psychology 96.8%
- Monetary 53.8%
- Valuation 99.9%
- Trend 47.0%