Further to my previous post which looked at who owns global assets, this post looks at the appetite for investment and the fact it is heading into panic territory.
The Global Risk Appetite Index compares the performance of 64 global assets to judge how willing or unwilling investors are to take additional risk. The index last entered panic territory in October of 2015, when global recession seemed a threat as China’s capital markets threatened to meltdown.
This time around, the issues are manifold: trade disputes, the Italian budget, Fed tightening and emerging market turbulence all “contend to be the main driver of this risk appetite slump”, the Credit Suisse analysts write.
Some big investors are taking action. Check out this chart:
It shows that some very big guns are starting to cut exposure to stocks.
According to the AFR this week, the behemoth that is Australian Super just cut back on local and international equities. Could this be the start of the giant, global ‘risk-off/sell off
Church are you preparing for what’s coming? It will be church as described in the Book of Acts that will be a blessing.
“Now when the multitude of those who believed were of one heart and one soul, neither did anyone say that any of the things he possessed was his own, but they had all things in common. And with great power the apostles gave witness to the resurrection of the Lord Jesus. And grace was upon them all. Nor was there anyone among them who lacked; for all who were possessors of lands, of houses sold them and brought the proceeds of the things that were sold, and laid them at the apostles feet; and they distributed to each as anyone had need.” Acts 4: 32-34