Bank’s proprietary indicator reaches 99th percentile, signaling rare investor optimism amid strong earnings and AI-driven tech spending.
Goldman Sachs’ Risk Appetite Indicator climbed above 1.1 this week, its highest level since 2021 and a reading last seen in the 99th percentile since 1991. The gauge has exceeded 1.0 only 2% of the time since 1950, underscoring its rarity.
The surge follows strong corporate earnings, easing Middle East tensions, and a tech-sector boost from AI-related capital expenditures. Investor positioning has shifted decisively bullish, reversing defensive moves triggered by the February conflict.
The bank’s strategists noted the divergence between macroeconomic headwinds and micro-level tailwinds, a dynamic not observed since 2000. The report highlights sustained momentum in risk assets despite broader economic uncertainties.