Market Update March 14, 2022

Market Update March 14, 2022

  • The S&P 500 lost 2.9% for the week and the Dow Jones Industrial Average lost 2.0%. The Nasdaq closed 3.5% lower.
  • All 3 indexes hit new lows last week Tuesday.
  • For the year, the S&P 500 is down 11.8% as of last Friday and 3.9% for the month.

We maintain our negative outlook from mid-January. The reason for this is that the participation of the overall market in the current downtrend is still very strong. Thus, the chances of a sustainable trend reversal remain low. The Big Picture indicator continues to signal a negative market environment for risk, characterized by negative forward looking returns and high volatility. The reason for this is that last week’s selling pressure was definitely driven by a broad base and thus remained qualitative.

  • For example, the number of stocks, there is still a significantly higher number of stocks which have fallen to a New 52-week low, while there have been hardly any 52-week highs worth mentioning.
  • The percentage of those stocks that are trading above their 100 or 150 day average remains low at under 35%. This shows that the majority of all U.S. listed stocks are still in a medium-term downtrend and thus the negative momentum is still broad-based.
  • Globally, the picture also continues to look very battered, with only 19% of the 35 major local equity indices still trading above their 200-day averages. This is also another sign that argues against a quick V-shaped recovery.
  • In sum, our assessment remains unchanged negative. With the current signal situation, we still think it is too early to build risk.

The Investor’s Guide to Impact

The Investors Guide to Impact

The Investors Guide to impact by Florain Heeb and Julian Kölbl ,,More and more investors want to contribute to solving the looming global challenges we face. Now we need to shift the focus from investments that merely feel good to investments that cause real-world impact.’’ Florian Heeb, Board of Directors Member of ESG-AM