FYI | Apr 28 2009
By Rudi Filapek-Vandyck
When measured on a day-to-day basis, Standard Chartered’s gauge for global investor risk appetite returned into Risk Neutral territory on Monday, as opposed to Risk Seeking. Could this be the harbinger for a gradual reduction in overall market buoyancy from May onwards?
Standard Chartered analysts are not sure what to make of this yet, but they have advised their clientele it might be wise to start thinking about not taking on board any extra risk exposure.The daily index had been in Risk Seeking territory since 12 March, or more or less the length of the global rally in equities and commodities.
Historically, analysts at Standard Chartered report, the Risk Appetite Index has proved most useful when it is turning from extreme levels. As such, the analysts intend to monitor carefully whether the 10-day moving average is turning down too into Risk Neutral territory. Thus far, the 10-day MA still remains in Risk Seeking territory.
