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
Risk Appetite Indicator Level and Momentum Factors The GS risk appetite indicator remains significantly in positive territory. Image: Goldman Sachs Global Investment Research
Risk Appetite Indicator for Different Asset Classes The risk-on environment is back, as investor sentiment is improving. Image: Goldman Sachs Global Investment Research
Global PMI and Risk Appetite Indicator When global PMIs are above 50 and rising, risk appetite has been mostly positive. Image: Goldman Sachs Global Investment Research
S&P 500 Performance and Risk Appetite Indicator This chart suggests that the S&P 500 has historically recovered, after the Risk Appetite Indicator falls below -2. Image: Goldman Sachs Global Investment Research
CS Global Risk Appetite Index The Credit Suisse Global Risk Appetite Index falls, but is not at panic level. Image: Credit Suisse
Fed Dovish Pivot – Stimulus Hopes Support Risk Appetite Growth sentiment appears to be stabilizing, due to optimism about fiscal policy. Image: Goldman Sachs Global Investment Research
Gold and FRB Broad Trade-Weighted Dollar Index According to BofA, the U.S. dollar debasement is a myth, as it rises and falls with global risk appetite, and has proven its safe haven status. Image: BofA
Performance for the Year: S&P 500, Nasdaq Composite and Dow Jones Industrial Average U.S. stocks climbed, erasing 2020 losses, as easing lockdowns boosts risk appetite. Image: Financial Times