As we’ve been stating the past couple of months, the markets are on the move, and our monthly peek at the Risk On/Off stats provide a little bit of proof of that. We’re far off from the big moves of a year ago, but we’re definitely moving into more of a risk on/off environment than we were in at the turn of the year. It is worth mentioning that June 20th saw an average move of -3.05% across the ‘Risk Off’ markets we track, the biggest move up or down of the year.
(Disclaimer: Past performance is not necessarily indicative to future results)
The 6-month moving average is hovering in the 5-7% range, below the 2002-2008 range (10% to 20%) and significantly below the typical levels from the last couple of years (20% to 35%) We define risk on as an average gain of over 1% for “risk” assets; risk off is an average loss of over -1% for “risk” assets. (Click here for a more detailed breakdown.)