Global Risk Monitor: Week In Review – March 22

We have incorporated several AI-focused ETFs into our equity table.

Additionally, observe the trend in financial conditions as indicated by the Chicago Fed’s National Financial Conditions Index, detailed in the commodities table. The index’s current reading of -0.53 – measured on March 15 and should be a few points easier for March 22, given this week’s market performance –  signifies the easiest financial conditions since January 2022, a few months prior to the Fed’s interest rate hikes were initiated in March 2022. These lenient monetary conditions are facilitating economic performance that is consistently surprising to the upside,  and allowing financial assets to rip.

This dynamism complicates the Fed’s job. Market anticipation continues to revolve around the first rate cut, but given the prevailing financial conditions, the wait is likely to continue.   

Waiting on Jay Po?   Prepare to keep waiting.