Goldman risk appetite gauge hits 1.09 as investors flock to small caps and emerging markets

Goldman Sachs data show its risk appetite indicator reached 1.09 last week, the highest reading since 2021 and in the 98th percentile of observations since 1991. Investors have been rotating toward riskier assets, with the Russell 2000 up 7.5% in its strongest start since 2021 and emerging market equities extending multi-decade winning streaks. While gold prices have more than doubled in two years, signaling some caution, Goldman strategists remain overweight equities in the current macro environment.