L&S Risk Pulse™ Indicator

L&S Risk Pulse™ is our measurement of overall market risk based on rigorous tracking and analysis of over 100 economic data points.

We make tactical asset allocation decisions based on current L&S Risk Pulse™ levels. As risk levels rise, we increasingly move from equities to cash. As risk levels drop, we reinvest in equities.

To stay up-to-date with our current L&S Risk Pulse™, bookmark this page or connect with us on Twitter, LinkedIn, Facebook or Google+.  Sign up below to receive L&S Risk Pulse™ updates with our FREE monthly market commentary.

L&S RISK PULSE™ LEVELS

Lowered (Green)
Risk levels are minimal, with global economies expanding and healthy. Markets are undervalued or fairly valued.
Lowered + (Green-Blue)
Risk levels are low, as economic conditions remain sound. Low near-term market volatility may be present, but risk of correction is low. Markets are fairly valued.
Medium (Blue)
Fringe data points may show levels of elevated risk, but composite risk levels are low. Markets are fairly valued or just slightly overvalued.
Medium + (Blue-Yellow)
Core economic indicators are healthy, but markets indicate potential near-term volatility and/or mild correction. Valuations are trending high.
Caution (Yellow)
Long-term macroeconomic conditions are strong, but at least several core economic indicators show weakness with noteworthy but outlying risk that requires monitoring. Valuations are approaching high for a majority of stocks.
Caution + (Yellow-Orange)
The composite economic picture is mixed or unclear, indicating confusion in global markets. Valuations are questionable and volatility must be monitored.
Elevated (Orange)
Global economic conditions are mixed and core economic indicators are deteriorating. Valuations are questionable and volatility must be monitored.
Elevated + (Orange-Red)
Global economic conditions are weak and/or markets are overvalued. Volatility is high and the risk of a non-recessionary market correction is elevated.
Critical (Red)
Core economic indicators point to a global economic slowdown and/or acute risk in a specific but highly significant market. Valuations are extremely questionable for a majority of stocks, with potential for a substantial market correction.
Critical + (Dark Red)
Systemic risks threaten the markets. There is imminent danger of global recession, and a corresponding secular bear market is probable.
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