Risk Aversion
Risk Aversion Index—New “Higher Risk” Signal
With global bond yields plumbing new all-time lows, we continue to favor Higher Quality credits within fixed income.
Risk Aversion Index—Stayed On “Lower Risk” Signal
After the last couple months’ strong surge, risky assets are entering a seasonally unfavorable period, with Brexit looming particularly large in the near term. We still favor higher quality credits within fixed income.
Risk Aversion Index—A New “Lower Risk” Signal
We are getting more constructive on credits but we are still keenly aware of the highly volatile market environment and would recommend modest exposure to lower quality credits at this point.
Risk Aversion Index - Stayed On Higher Risk Signal
The level of this index is in an extreme zone where false alarms are more likely as small movements in the index can trigger new signals.
Risk Aversion Index Falls To New “Lower Risk” Signal
The RAI had the biggest drop of the year in September and triggered a new “Lower Risk” signal. This is largely due to the no-taper decision by the Fed. We remain cautious in the near term due to the debt ceil- ing debate but recommend increasing risky exposure after the debt ceiling resolution.
RAI Rises Again, Stays On “Higher Risk” Signal—Remain Cautious
The RAI rose again in June and stays on a “High Risk” signal. June saw an acute case of carry trade reversal; we remain cautious and recommend higher quality within fixed income.
RAI Rose Again And Stays On “Higher Risk” Signal—Remain Cautious
The RAI rose in May and stays on a “High Risk” signal. We remain cautious and recommend higher quality within fixed income.
Risk Aversion Sharply Lower—But Optimistically Cautious
We remain optimistically cautious, as we believe the determination of the policy makers to prop up the market should not be underestimated, especially in an election year.
The State of Momentum Investing: A Global Perspective
Most quantitative portfolio managers employ some variation of the momentum strategy, and most have had a hard time with this particular strategy since the end of 2007.
View from the North Country
Human behavior demonstrates that individuals as a group are risk averse…studies of investor behavior have yielded some interesting findings. Also, Japanese low interest rates in themselves have not yet converted caution and pessimism into confidence and optimism.
View from the North Country
Proportionately, equity investment professionals have the most to lose when the Great Bull Market ends. But are investors really aware of their own potential stock market risks?
Perception for the Professional
March 2026 Issue
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March 2026 Issue
