Research
![Market Outlook – Psychology is approaching the best quintile of readings](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20221007-Cypress-Market-Outlook-pdf.png)
Market Outlook – Psychology is approaching the best quintile of readings
![Q3 2022 World Wrap](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/2022_Q2-World-Wrap-pdf.png)
Q3 2022 World Wrap
– All key asset classes declined, and stocks set new lows in the third quarter of 2022.
– Energy and Consumer Discretion stocks increased in Q3, but all other sectors, styles and factors saw lower prices.
– Latin American stocks advanced 3.7% in Q3 moving into positive territory for the year. Brazil is up 11.8% ytd.
– The US Dollar shot to 20 year highs, climbing by 7.1% in Q3. The dollar is up 16.8% ytd.
![Market Outlook – Big Improvement in Psychology Offset by Shift to Bearish Market Trend](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20220930-Cypress-Market-Outlook-pdf.png)
Market Outlook – Big Improvement in Psychology Offset by Shift to Bearish Market Trend
![World Wrap](https://www.cypresscapital.com/wp-content/uploads/Research/Reports/20220924-World-Wrap-pdf.png)
World Wrap
– A sea of red for all asset class returns for a second straight week after the Fed raised rates by another 75bps.
– All sectors, styles, and factors declined. Energy stocks were the worst performing sector, declining 9%.
– Brazil and Egypt were the only two countries with stock markets advancing.
– Bull market in the US Dollar continues – the dollar was up whopping 3% for the week and has climbed more than 20% in the last 12 months.
%
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 97.5%
- Monetary 55.3%
- Valuation 100%
- Trend 34.9%