EP Monthly - Mar 2022
Last February 17th, EyePerformance’s Global Risk Indicator entered negative territory, signaling investors an immediate shift in their portfolios to a defensive risk profile, thereby reducing exposure to risky assets to the minimum levels or to the extent their risk appetite allows.
Although the business cycle cluster recovered in mid-December, it resumed its deterioration at the end of January mainly due to credit markets, both high grade and high yield, and corporate earnings sub-clusters. Market momentum is quite negative as depicted in Exhibit 1, resembling the dynamics experienced at the end of 2018, with all three sub-clusters volatility, medium-term and long-term in negative territory since the first week of February.
Since the Global Risk Indicator entered negative territory on February 17th,the MSCI World has corrected almost -4%, DJ EuroStoxx50 -13.5% and S&P500 -1.2%1.....