Goldman's Risk Appetite Indicator falls to -0.5, signals caution
Summary
Goldman's cross-asset Risk Appetite Indicator (RAI) has dropped to -0.5, marking its lowest level since April 2025, following the Liberation Day tariff crash. This decline indicates a heightened caution in market sentiment, particularly as the correlation between the RAI and the Nasdaq 100's performance relative to the equal-weight S&P 500 has surged to nearly 1 in recent weeks, suggesting that investors are increasingly favoring growth stocks over broader market assets.
Tokens
$NDX$SPX
Analysis
S&P 500: The S&P 500 is a market-capitalization-weighted index of 500 large-cap U.S. companies across various sectors. The news discusses its equal-weight version in relation to the Nasdaq 100 and broader risk sentiment correlations highlighted by Goldman strategists. Nasdaq 100: The Nasdaq 100 is a modified market-capitalization-weighted index that tracks the 100 largest non-financial companies listed on the Nasdaq exchange. The news references its performance relative to another major index in the context of rising correlations with Goldman's risk appetite measure. Goldman Sachs: Goldman Sachs is a leading global investment bank and financial services firm offering advisory, trading, and asset management services to clients worldwide. In this news, the firm's portfolio strategists analyze the decline in its cross-asset Risk Appetite Indicator and its relationship to equity index movements. Risk Measurement: Major investment banks publish proprietary indicators to gauge overall market risk appetite and sentiment across asset classes. Index Correlation: Correlations between risk appetite measures and the relative performance of growth-oriented versus broad market indices have been a focus in recent market analysis.
Categories
macro