Have 'Investors' Reached Their Post-Panic 'Animal-Spirits' Peak?
It doesn't get any better than this - or at least in the last 30 years we have not seen a post-panic rally in risk appetite extend beyond the current length of this move. Credit Suisse's Global Risk Appetite index, which is notably tracking lower with ISM New Orders data, has not extended beyond this time-frame from any of its previous 'deep-panic' peaks. While equity markets contonue to diverge higher, risk appetite is notably lagging and one has to wonder if that historical 'animal-spirits' trough-to-peak period (which is set to coincide with Jackson Hole, FOMC, and ECB meetings) will hold once again as hope fades and reality rears its ugly head.
Charts: Credit Suisse
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