April 11th 2014
Market Risk Alert Rating: [clients only]
Based on a scale of 1, lowest to 5, highest chance of a risk reversal.
This week’s Market Risk AlertTM rating [clients only] (1 to 5 ranking, 5 being max risk-off) reflects the fact that the [clients only] signals are all realized measures such as higher volatilities and lower returns. Most notable was that last week’s losses were not limited to equities as most risk assets waned with meaningful 2D losses. However, we do [clients only] . As discussed in our 2014 outlook, the sustained and global reliance on ZiRP will continue to drive risk and opportunity for investors in 2014 and beyond. Therefore our attention remains the FED.
Regional Market Risk Heat Map (below)
This week did see more follow through from other markets across regions with [clients only] being the most susceptible to loss based on [clients only] strength and high cross-market correlations.
Outlook: Developments in the Ukraine have the ability to move [clients only] likely limited to [clients only]. This potential for continued volatility in global equity markets will be realized the most in the [clients only] with continued underperformance relative to the G-10 indices according to our signals.