Sentiment – Risk Appetite and Expected U.S. Equity Market Performance Risk appetite among U.S. equity fund managers held up in July, though it was hardly enthusiastic. Valuations, geopolitics and monetary policy are still weighing on near-term return expectations. Image: S&P Global Market Intelligence
Risk Appetite Indicator Level and Momentum Factors Goldman Sachs’ Risk Appetite Indicator increased again, keeping markets firmly in risk-on territory. Image: Goldman Sachs Global Investment Research
GS Risk Appetite Indicator and U.S. Equity Momemtum 1-Year Z-Score When risk appetite and momentum run too hot, like today, future equity returns typically fade under the weight of easy optimism. Image: Goldman Sachs Global Investment Research
Risk Appetite Indicator for Different Asset Classes Investors’ risk appetite for equities has cooled recently but stays in positive territory amid ongoing market swings. Sentiment has definitely softened, but bulls haven’t left the room. Image: Goldman Sachs Global Investment Research
S&P 500 Performance and Risk Appetite Indicator Good news for the bulls: Goldman Sachs’s Risk Appetite Indicator broke above 1.0 last week, a bullish signal that has historically lined up with roughly 15% median gains in the S&P 500 over the next 12 months. Image: Goldman Sachs Global Investment Research
Risk Appetite in Flows After Adjusting for Seasonality and Cyclical Growth Market sentiment is currently robust, with risk appetite in flows at the 85th percentile, falling short of extreme levels. Image: Deutsche Bank Asset Allocation
Sentiment – Global PMI and Risk Appetite Indicator The GS risk appetite indicator remaining elevated suggests that investors have a high appetite for risk in the financial markets. Image: Goldman Sachs Global Investment Research
U.S. Credit Risk Appetite and Global Risk Appetite U.S. credit risk appetite has reached panic level, which is contrarian bullish. Image: Credit Suisse Research
Risk Appetite Indicator and U.S. ISM Manufacturing The risk appetite indicator is below zero, as investors expect growth to slowdown. Image: Goldman Sachs Global Investment Research
Sentiment – Global Risk Appetite Index The global risk appetite index remains positive, but is drifting down. Image: Credit Suisse Research
Bitcoin and Risk Appetite Indicator Bitcoin and market sentiment tend to move in tandem. Image: Goldman Sachs Global Investment Research