Global Risk Appetite Remains On Course For Panic

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Rupert Hargreaves
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According to Credit Suisse, global risk appetite is on course for “panic”. This observation is based on CS’s proprietary Global Risk Appetite Index (GRAI), which has been constructed using data going back to the early 80s. The bank doesn’t reveal how it calculates the GRAI exactly, but it explains that the: …GRAI is the slope of a cross-sectional, weighted, linear regression of a 6-month excess return measure (y-axis) on 12-month price variability (x-axis). This regression is estimated daily using rolling windows of data. Currently, the returns of 64 country-based assets are used in the calculation. The constituents are broad equity and government…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk