Tuesday, March 19, 2013

A world full of risk

Acording to Bloomberg BusinessWeek; Leuthold’s monthly Risk Aversion Index, which bakes together various credit and swap spreads, commodity and currency prices, and relative asset returns to offer a broad gauge of skittishness, hit a record low late 2012 going back to 1980. That span includes the Crash of ’87, the rolling emerging-market contagions of the 1990s, and the multiple human and financial calamities of the past decade.

Another reading, the JPMorgan (JPM) G7 volatility index, also it at lows late 2012 unseen since peak swell of the private equity bubble, when Blackstone’s (BX) Steve Schwarzman hoarded $40 crab claws and few suspected that Greece’s and Spain’s books were sautéed.

How does this overwhelming calm jibe with the prevailing uncertainty of our times?

See the full article in Bloomberg BusinessWeek here.

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