AOA - Despite Geopolitical Threats Markets Still Lean Into Risk-On

2024-01-30 14:05:00 ET

Summary

• There’s no shortage of troubling developments around the world, but markets are still inclined to embrace a risk-on bias.
• The relative performance of semi-conductor stocks, a business-cycle proxy, last week surged to a record high relative to US equities overall before a modest pullback/consolidation through Monday’s close.
• Markets aren’t immune from global risks, but for now the so-called wisdom of the crowd continues to look through current events.

There’s no shortage of troubling developments around the world, but markets are still inclined to embrace a risk-on bias. There are exceptions, of course, but from several big-picture angles the trends continue to skew positive, based on a set of ETF pairs that serve as risk proxies through Monday’s close (Jan. 29)....

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