Taps Coogan – March 12th, 2022

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The following chart from Goldman, via Isabelnet, shows Goldman’s Global Risk Appetite Indicator (GSRAII) going back to the Global Financial Crisis.

The current reading, nearly ‘-2,’ suggests exceptionally low level of risk appetite among investors, roughly equivalent to the sentiment during the market selloff of late 2018.

While it’s certainly easy to understand why risk appetite has soured (tightening monetary policy, inflation, Ukraine, etc…), and it can certainly get worse from here, this has tended to be a contrarian indicator at levels not too much further down than here.

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