The L&S Risk Pulse™ is a truly innovative process that seeks to combine quantitative and qualitative investment worlds.
It starts with continuous tracking of hundreds of economic data points. Then our seasoned investment team applies their decades of wisdom and insight, filtering through the noise and zeroing in on what we perceive to be the most important current indicators of risk.
Based on this combination of hard data and professional experience, we deliver our current L&S Risk Pulse™ evaluation along with a detailed analysis explaining our thinking and insights. It’s a rigorous and deeply thoughtful process that helps us determine when risk is rising so we can make adjustments to our strategies in an attempt to minimize your downside exposure and protect your portfolio. The goal—as always—is to balance opportunity and risk.
Last Updated 03/05/2020
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.
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.