Latest ROOF HighlightsLearn more about the two variants of Qontigo’s sentiment indicator, Style-ROOF and Sector-ROOF, as well as their application for portfolio construction in the ROOF Portfolios.
Sentiment continued to improve last week across all markets we track except China, which saw a small decline (albeit from a very high base). US investors recorded the largest increase in sentiment, crossing over into bullish territory.
Investor sentiment continues to hoover within the neutral zone, held back by high valuations, and supported by a growing sense that inflation fears may have been just that, a temporary illusion caused by an abnormally low base.
Investor sentiment continues to hoover within the neutral zone, held back by high valuations, and supported by a growing sense that inflation fears may have been just that, a temporary illusion caused by an abnormally low base.
Investor sentiment declined sharply again last week in all markets we track except China. US investors regained their leadership role as the most negative investors with sentiment there falling deeper into bearish territory.
Investor sentiment declined sharply again last week in all markets we track except China. US investors regained their leadership role as the most negative investors with sentiment there falling deeper into bearish territory.
Investor sentiment declined sharply again last week in all markets we track except China. US investors regained their leadership role as the most negative investors with sentiment there falling deeper into bearish territory.
Worries about inflation and higher interest rates pressured investor sentiment globally, halting and even reversing its recent rise in most markets. US investor sentiment declined, ending the week with one foot in bearish territory.
Decomposition of the ROOF Ratios (both Style and Sector variants) show that the main driver of this past week’s increase in sentiment was declining volatility and not a penchant for more risk-tolerant styles or sectors (removing the two risk metrics show a decline in sentiment last week).
Sentiment remains stuck in neutral in all major markets except China. Investors have gone from convincingly bullish in Q4, 2020 after multiple vaccine news, to fence-sitters and bet-hedgers so far in 2021.
US investor sentiment recovery stalls midway into the Neutral zone. European investor sentiment makes an attempt at regaining the bullish zone. Global and Asia ex-Japan investor sentiment recovery suffers from lack of confidence.
US markets seem in Déjà vu mode with sentiment following a similar pattern of recovery. European investor sentiment leads other regions to the top of the neutral zone. Global and Asia ex-Japan investor sentiment recovery settles in the Neutral zone.
Helped by the repeated promise of continuous stimulus from the Fed and the Biden administration, US investor sentiment began to stage a rebound from deep in bearish territory, to the edge of the neutral zone (top chart). In recent weeks, a deteriorating sentiment had capped market’s advances, but that downward pull seems to weaken last week with both ROOF ratios recovering some ground, ending just shy of the neutral zone.
