Sentiment – Risk Appetite and Expected U.S. Equity Market Performance U.S. equity investors’ risk appetite has fallen from recent highs in January 2025, driven by concerns over interest rates and geopolitical tensions. Image: S&P Global Market Intelligence
Risk Appetite Indicator Level and Momentum Factors The Risk Appetite Indicator is currently signaling a strong preference for higher-risk investments, reflecting a positive market outlook and a risk-on environment. 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
Risk Appetite Index As investors embrace a more aggressive stance, the risk appetite indicator is back to elevated levels, signaling a willingness to take on higher levels of risk for potentially greater returns. Image: Goldman Sachs Global Investment Research
Risk Appetite Indicator for Different Asset Classes The strong risk appetite of investors for credit investments indicates their confidence in the potential returns compared to other investment options. Image: Goldman Sachs Global Investment Research
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
Risk Appetite Indicator Level – Drawdowns and Up Moves Time to reduce risk? When the Risk Appetite Indicator (RAI) level is above 1, near-term returns tend to be lower on average, with larger drawdowns. Image: Goldman Sachs Global Investment Research