Risk-On Sentiment Persists For Global Strategies
Despite worrisome headlines, high valuations in some markets, and elevated policy uncertainty, the appetite for risk remains strong, according to a set of ETFs through Monday’s close (Oct. 20).
Echoing last month’s update, the trend is still positive for the ratio of two global asset allocation ETFs via an aggressive strategy vs. its conservative counterpart . This indicator rose yesterday, trading just below a record high, signaling that demand for risk assets remains robust.
Risk-on signaling also looks strong for the US equity market, based on the ratio for a conventional measure of the US stock market vs. a low-volatility counterpart, which proxies as a relatively conservative strategy for holding US shares. While this…
