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Monday, July 11, 2022

Financial risks are rising in the US! - Part 5

Financial risk updates:

The Bloomberg US financial condition index has a positive correlation to the S&P500 as indicated by the chart below.  The US financial condition index has a downward trajectory now for the year 2022.

The Fear & Greed Index is also indicating a worsening financial sentiment as the index is in the fear region now.
The S&P500 earnings forecast is overwhelmingly optimistic and has not been downgraded yet.  Thus, the earnings downgrades will look increasingly likely to happen soon.

Last but not least, the latest Atlantic Fed GDP estimate is still in negative territory (-1.2%).

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