Review of Risk Appetite in 2010 (by Biffermas)

By -

Assessing
the general willingness of speculators to exposure themselves to risk is vital,
for obvious reasons.  From March, 2009
through December, speculators tripped over each other exposing themselves.  Since the first two weeks of 2010 are over,
I'll review the slimy tracks that traders have left in bonds, equities, and
gold / silver, and compare this brief period with a longer-term view.

Stocks - Comparing the high-fliers of Google, Apple, and Amazon vs. the stodgy old Coca Cola, Procter and Gamble, and Johnson & Johnson

Longer term speculative names dropping 

 

Ten day leadership 

 

Bonds - A comparison of high-yield (riskier) bonds vs. the boring low-yield (high quality) names.

Longer term risky bonds 


Ten day bonds 


Gold / Silver - A simple comparison of the gold and silver ETFs.

Longer term silver gold 


Ten day silver gold 


To sum, equities are showing a reduction in risk appetite during the first few weeks of 2010, Bonds are essentially neutral, and the silver market is showing continued desire for risk over gold.