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:


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Michael's picture

Just give it up bitches.

Accept your fate.

The worldwide financial system is toast!

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.   


hugovanderbubble's picture

Credit Suisse is trapped in the REHYPOTHECATED FUNDS




westboundnup's picture

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

hugovanderbubble's picture

Very simple sir..

With A credit Event

-The sell off is unavoidable-

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. ¡

ThrivingAdmistCollapse's picture

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

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.

Everyman's picture

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

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.