
Vito J. Racanelli, at Barron’s, writes that the easy money has been made in this bull market. To the left is the UBS Global Equity Strategy Risk Indicator (click on for larger image). This UBS gauge combines equity and currency volatility measures, credit spreads, and investor preferences for higher-risk geographic regions, like emerging markets, and stock sectors (such as cyclicals).
It’s obvious from first glance at this chart that the risk appetite of investors has gone up, but what is surprising is that it appears to be near all-time highs.
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