Risk-On Environment Rewarding the Bulls

Appetite for risk remains robust as bull market behavior is quick to return

What: Our cross-asset risk indicator has been sending a consistent “risk on” signal since May 2023.

So What: Price trends (which form the basis of this indicator) have been persistent even as breadth has struggled at times. The persistence of quiet strength could help keep the rally intact.

Now What: Global breadth is getting back in gear. In fact, over the past quarter century, there were only five other instances during which global trends improved as rapidly as over the past 13-weeks. None of those previous occurrences were followed by weakness.

Subscribers can keep reading to see the latest from our Bull Market Behavior Checklist and Key Takeaways from this week’s Relative Strength Rankings.