The expected risk premium for the Global Market Index (GMI) dipped in June, falling to its lowest level since January. GMI — an unmanaged, market-value weighted mix of the major asset classes — is projected to earn an annualized 3.6% over the “risk-free” rate in the long term. (For details on the equilibrium-based methodology that’s used to generate the forecasts each month, see the summary below). Today’s updated estimate, which is based on data through the close of last month, slipped 30 basis points from the previous projection.
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● ISM: US services sector posts slightly stronger growth in June…
● But PMI reports “slowest rise in service sector activity for five months”…
● The Fed’s Labor Market Conditions Index still points to weak expansion in June…
● As the Conference Board’s Employment Trends Index accelerated last month…
● Meanwhile, global growth slowed to a 5-month low via PMI data…
● And the debacle in Greece rolls on as the Eurozone awaits a new proposal from the government in Athens