Dynamic Market Risk Indicator (DMRI)

 

​Our proprietary investment model, the Dynamic Market Risk Indicator (DMRI) is constructed of 20 data points that are graded on a daily basis. These 20 indicators are equally-weighted and provide a composite risk rating for the market. Some of the key inputs include:

Market strength indicators such as the S&P 500, retail stocks, transportation stocks, and commodity stocks.

Economic bellwethers such as copper, gold and the US dollar.

​Sentiment indicators such as the put/call ratio and short and intermediate term volatility indices.

​Each day the DMRI assigns a risk grade which is used to determine the optimal asset allocation among stocks, bonds and cash.

​Additionally, we analyze and grade the technical attributes of over 30 different markets weekly. Each market is assigned an unambiguous buy, sell or neutral rating which we use to select investments for our portfolios.