From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Sideways has been the theme for most risk assets since they peaked in the first half of last year. Markets have become increasingly messy in the time since.
If we’re talking about US equities, the market is as bifurcated as it’s been in years.
All we mean by this is that depending on what group a stock is in, it could be in a nice uptrend, but it could also be in an ugly downtrend. Stocks and other risk assets are literally moving in opposite directions these days, and doing so with some serious momentum.
At the index level, you can see this split market reflected by trendless ranges.
When we look to our risk-appetite ratios and indicators for information, we’re not getting much as the vast majority are still stuck in the same ranges they’ve been in for the better part of 12-months.
So, risk assets are a mess and most of our risk indicators are also a mess. Makes sense, right?