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CS Global Risk Appetite Signals Risk-Off As Sentiment Stays In 'Panic' Mode

Tyler Durden's picture





 

Credit Suisse has been producing country-specific and global risk appetite indices for years, offering a quick-and-dirty perspective on the market participant sentiment in global risk assets. By empirically tracking the relationships between 'safe' and 'risky' asset classes, they have created a useful contemporaneous view of current market perceptions. The index swings between euphoria and panic modes and shifted to full-scale panic around mid-year. Since then the index has gradually improved as the psychological bias of 'it can't get any worse, right?' seems to have kicked in until recently where CS notes a recent downturn. So while we have 'improved' back to only Panic Mode, the expectations are for a prolonged risk-off session in the short- to medium-term.

 

Short-term, CS sees risk-off as the Global Risk Appetite Index turns back down shy of Panic Mode...

and longer-term shows just how 'deep' a panic this most recent case was - and obviously given CS's perspective, how it will dip back down again.

The primer on Credit Suisse Global Risk Appetite indices is below:

CS_GRA

 


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Thu, 12/22/2011 - 06:59 | Link to Comment Michael
Michael's picture

Just give it up bitches.

Accept your fate.

The worldwide financial system is toast!

Thu, 12/22/2011 - 07:42 | Link to Comment Popo
Popo's picture

I hope that CS has long-since fired whichever summer-intern cum junior analyst made Charts 3 & 4 in the attached doc.  I can't imagine a more inept use of a chart.   Clearly, not a single capable person reviewed this trainee's work before publication, as the charts are entirely illegible -- and are an inappropriate choice of chart for this dataset.   

 

Thu, 12/22/2011 - 07:14 | Link to Comment hugovanderbubble
hugovanderbubble's picture

Credit Suisse is trapped in the REHYPOTHECATED FUNDS

 

*

TIC TAC...

Thu, 12/22/2011 - 07:22 | Link to Comment westboundnup
westboundnup's picture

Yes, but when does it end?  As long as banks have discount windows the dance continues.

Thu, 12/22/2011 - 07:27 | Link to Comment hugovanderbubble
hugovanderbubble's picture

Very simple sir..

With A credit Event

-The sell off is unavoidable-

Thu, 12/22/2011 - 07:24 | Link to Comment hugovanderbubble
hugovanderbubble's picture

All those quant panic models....based on print keynesian models...

wonder when they gonna modelize a Japanization depression wave, eternal deflation....or just depression. ¡

Fri, 12/23/2011 - 00:43 | Link to Comment ThrivingAdmistC...
ThrivingAdmistCollapse's picture

I think it's going to be an outright economic collapse followed by a lost generation style deflationary depression.

Thu, 12/22/2011 - 08:41 | Link to Comment trampstamp
trampstamp's picture

What's the deal with the doc? it's dated 2004.

Edit: NM... it's just giving some background how the chart is used.

Thu, 12/22/2011 - 10:21 | Link to Comment Everyman
Everyman's picture

But I thought it was "fixed"?  (Again)

Thu, 12/22/2011 - 11:24 | Link to Comment El Viejo
El Viejo's picture

You know I was alive in the fifties and my uncle had an underground shelter. These days people don't seemed to be concerned. I think that is a dangerous mindset.

http://www.debka.com/article/21589/

 

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