RBC Insurance | Economic Compass: Risk Appetite Renaissance
Please see message below from RBC Global Asset Management Chief Economist Eric Lascelles.
As earnings growth has slowed, the stock market rally has increasingly relied upon a rising risk appetite.
We calculate that risk appetite has finally returned to a neutral stance, and still has room for further moderate improvement.
Of the underlying contributors to this action, risk tolerance in particular can afford to continue normalizing and an attractive return proposition should remain a positive catalyst.
While there is always the risk of a reversal, it is comforting that risk appetite looks much more normal than it did the prior two times the stock market reached current levels.