Blog: Macro Changes This Way Come

After several weeks of improving conditions, the Market Climatology model is seeing a definite shift back towards higher risk. The headline indicators have not yet changed but the sub-indicators are pointing towards a storm brewing. Given the anecdotal uncertainties:

(1) An increase in geopolitical risk in the Middle East,

(2) Political gridlock in the US, and

(3) Economic conditions deteriorating in China,

I felt I should discuss a few of these sub-indicator changes in case, as I suspect, they start triggering all at once causing a Risk Cascade.