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Modified Mannarino Market Risk Indicator & Bubbles

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Modified Mannarino Market Risk Indicator

MMRI = DXY * 10Y Yield
MMMRI = MMRI * (Debt/GDP)

  • Color Indicators
    Green ~ Low Risk
    Yellow - Mod Risk
    Red - High Risk
    Purple - Extreme Risk

*


Bubbles Formula (MMMRI_DK)

DXY*(10Y + FED Rate)* (Shiller P/E Ratio) * (Warren Buffet Indicator)*(Debt/GDP) /1.61

Similar to the Shiller P/E Ratio - you need to look back to see where the bubbles were. The difference between the Dot Com bubble and subsequent ones is that we now have QE which is why I included the FED Rate + 10Y.


*Color Indicators
Green ~ Low Risk
Yellow - Mod Risk
Red - High Risk
Purple - Extreme Risk


Future Bubbles Formula (MMMRI_DK_Fut)

DXY*(10Y + Future FED Rate)* (Shiller P/E Ratio) * (Warren Buffet Indicator)*(Debt/GDP) /1.61

Assumes that the 10Y is fixed but what is important is that you will get an idea on when the system may pop.
Nota Keluaran
Bug Fix

Penafian

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