Risk appetite remains positive in November
SHORT-TERM TREND
"Risk-on" sentiment continues to recover amid signs of stabilization.
Risk

- U.S. assets, including equities, rallied and outperformed global markets.
- The U.S. dollar gained against most international currencies.
- Sovereign bond yields rose across the board, including in emerging markets.
- Emerging-market assets overall underperformed other global markets.
LONG-TERM CYCLE
This 10-year illustration captures the cyclicality of investors' appetite for risk.
Sept–Nov '11
Eruption and subsequent clearing of concerns over EU sovereign debt crisis, U.S. debt ceiling, and fear of China hard landing drive major risk sell-off and rally.
March '16–Jan '18
Risk assets rally amid improving commodity prices, perceived stability in China’s macro data, and expectations for gradualist Fed policy.
Source: Putnam. Data as of November 30, 2019. To create the Global Risk Appetite Index, we weigh the monthly excess returns of 30 different asset classes over 3-month T-bills relative to the trailing 2-year volatility of each asset class. The higher the excess return and the lower the volatility, the greater the risk appetite; conversely, the lower the excess return and the higher the volatility, the stronger the risk aversion.