Market Status

The market. Broad appetite for risk. Volatility is low, credit spreads are tight, most stocks are in uptrends and safe havens are out of favor.

For investing, in general. The most supportive backdrop for stocks and other risk assets; dips have usually been bought quickly. The risk is complacency: very low readings can come before sharp, brief shakeouts.

The market. Constructive, with a few minor concerns. One or two areas are off their best levels, but the weakness is not spreading.

For investing, in general. Still a supportive backdrop; staying invested and buying pullbacks has usually worked. Worth watching which category is drifting higher.

The market. Mixed signals with no clear direction. Some categories show stress while others stay calm.

For investing, in general. No strong tailwind or headwind from the market as a whole. Stock selection, position size and diversification matter more than the market's direction.

The market. Active risk aversion. Credit spreads are widening, volatility is high, stocks are falling broadly and money is moving into Treasuries, the dollar and gold.

For investing, in general. Declines are more likely to extend. Risk-managed approaches typically cut exposure and lean toward defensive assets and cash. Rallies in this stage tend to be sharp but short-lived.

The market. Crisis conditions and forced selling, as in the 2008 financial crisis and March 2020. Correlations jump, so most assets fall together, and liquidity dries up.

For investing, in general. Capital preservation comes first. These stretches have also produced major long-term lows, but timing them is very hard; recoveries have often started before the readings improved.