MARKET RISK RATINGS

Assessing and managing the risks of financial investments is key to avoiding volatile markets and protecting your assets.

We support you in identifying low-risk investments and new buying opportunities by providing intuitive market risk ratings.

The ratings are easy to understand and use, and can help you to make smart and informed decisions about their investments.

HOW OUR MARKET RISK SCORES WORK

Our risk benchmarks indicate the risk of stock, bond, foreign exchange markets, and commodities on an aggregated basis. A market risk score is a percentage number between 0% (= no risk) and 100% (= high risk) which provides an overall estimate of the current riskiness in a market.
Low percentage readings help you identify relatively low-risk markets and vice versa. In other words: the higher the score, the greater the risk.

They are also designed to give you a quick and easy way to compare the actual risk of different assets and markets.

The scores are based on historical data and current market conditions, and they are updated every week.

Generally, a risk rating equal to or above 60% indicates a relatively high-risk and unfavorable market environment.

RISXX market risk rating explained

RISXX risk score overview

GET AN INTUITIVE ASSESSMENT OF CURRENT MARKET RISKS

Risk is an important factor to consider when making any decision. Our risk indications aggregate and divide risk into three main zones:

“Low Risk” when the risk rating is lower than 40%

This first zone is the buying zone where the prices are going up and which is characterized by low levels of price volatility and uncertainty. Investments are expected to have stable prices and generate consistent returns.

“Medium Risk” when the risk rating is between 40% and below 60%

This second zone is the holding zone where the prices are stable and which is associated with moderate levels of price volatility and uncertainty. Investments may experience occasional price fluctuations but are still expected to generate positive returns.

“High Risk” when the risk rating is equal to or higher than 60%

This is the selling zone where the prices are going down, the risks are high, and which refers to a high potential for financial harm. Investments are expected to experience significant price fluctuations and may not generate positive returns.

These three zones provide you with a simple way to assess the current level of risk associated with a particular market or asset class and help you to create a more manageable risk-based portfolio that can withstand market volatility.

“Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty – such as in the fall of 2008 – drives securities prices to especially low levels, they often become less risky investments.”

Seth Klarman

LOW-RISK MARKET

A risk score below 40% indicates a favorable and positive market environment.

A lower risk score refers to a low-risk market environment, which means your investment in this market should be relatively safe.

With the help of this rating, you can discover new markets with a rather low-risk environment. So, stay relaxed and invested.

RISXX score - low risk market environment
RISXX score - high-risk market environment

HIGH-RISK MARKET

A risk rating equal to or higher than 60% indicates pretty adverse and volatile market conditions.

A higher risk score indicates that your assets invested here could be at risk. It would be best if you consider protecting your assets and exiting the market.

In such a condition, relax your mind and consider staying away from unfavorable market situations.

SIMPLE BUT EFFECTIVE RISK-BASED INVESTMENT DECISIONS

There are many different factors to consider when making investment decisions. One important factor is market risk. Market risk is the risk that the value of your investment will go down due to changes in the market. Many investors try to minimize their market risk by diversifying their investments. This means investing in a variety of different assets, such as stocks, bonds, commodities, real estate, etc.

However, you can also manage your market risk by using risk-based investment strategies. These risk management strategies take into account the market risk of an investment and try to maximize returns while minimizing risk. We have developed our easy-to-follow market risk ratings that can help you unlock return potential in bull markets (i.e. the market risk score is lower than 60%) and minimize your losses in bear markets (i.e. the market risk rating is equal to or above 60%).

SIMPLE AND EASY TO FOLLOW

We designed our risk ratings in a way that it is easy to follow them for anyone, even with basic investment knowledge.

RISK SCORE < 60%: FULL INVESTMENT

The (low) level of the risk rating indicates that the underlying market prices, for example, US stocks, should rise.

According to this recommendation, you should consider investing your money in the relevant asset class, such as a 100% investment in US stocks.

RISK SCORE >= 60%: NO INVESTMENT

The (high) level of the risk score suggest a switch to 0% investment and indicates that the underlying market (e.g., US stocks) should have no significant upside potential.

To support you in preserving your capital, the elevated risk rating equal to or above 60% will suggest putting your money into a cash position on the sidelines.

The intention is to potentially reduce risk by getting you out of the way of severe bear markets and market crashes.

Market risk strategies signals - how it works - buy and sell indications
RISXX market risk ratings - customer-satisfaction-5-stars-testimonial

“I have thoroughly enjoyed your weekly updates for the past several years. Many thanks for all your helpful information in the past.”

Peter, Virginia

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Market risk definition from Wikipedia, the free encyclopedia.

DISCLAIMER

GENERAL & LIABILITY

RISXX Inc. provides this website and its information for guidance and information purposes only. Therefore this website is not an offer to purchase or sell or solicit any offer to buy or sell any security or instrument. It is also not an offer to participate in any trading strategy. We compiled the information contained herein from sources deemed reliable. Consequently, it is accurate to the best of our knowledge and belief. However, RISXX Inc. cannot assure its accuracy, completeness, and validity.
Furthermore, RISXX Inc. cannot be held liable for any errors or omissions. All information contained herein should be independently verified and confirmed. Above all, we do not accept any liability for any loss or damage howsoever caused in reliance upon such information. Reader agrees to indemnify and hold harmless RISXX Inc. from and against any damages, costs, and expenses. This includes any fees potentially resulting from the application of any of the information provided by RISXX Inc.

PERFORMANCE

The analysis, ratings, and recommendations made by RISXX Inc. do not provide, imply, or otherwise constitute performance assurance. In other words, past actual or simulated performance is no guarantee of future results. The user shall not assume that future results will be positive or equal past performance, real, indicated, or implied. RISXX Inc. offers no assurance regarding the accuracy, market predictive powers, suitability, or effectiveness (either expressed or implied) of any of the information provided.

RISKS

Any market exposure always entails the possibility of substantial loss of equity. The website user agrees to assume all risks resulting from applying any of the information provided by us. Additionally, to usual risks embedded with investing, international trading may involve the risk of capital loss. For instance, fluctuations in currency values, differences in accounting principles, or economic or political instability in foreign countries could cause the risk of capital loss.

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