Calm Before The Storm? Markets Are Risk-Neutral

Despite the volatility in the financial markets over the summer - and the expectation for it to return in conjunction with the U.S. presidential/Congressional elections, all seems to be calm on the Western (and Eastern) fronts.

At Excalibur Pro, we measure market risk by using an IMF metric that compares current prices of traditional risky instruments with their 60-day moving average. When the current price is 5% above or below the 60-day MA, you are moving into a risk-on, risk-off environment.

Currently, our Riskometers are showing most instruments are drifting in more neutral territory. But with our expanded charts, you can see when they are signaling a change in market environment.