The Rhy Risk Indicator (RRI) is a systematic indicator for assessing the risks in the stock market.
In most cases, technical and fundamental factors are not sufficient to carry out a reliable risk assessment. Our analyses have shown that in the short term, the investor’s risk appetite is one of the most important factors that determine the direction of the stock market.
High risk appetite tends to lead to rising markets. If investors are risk averse, it is more likely to be expected with falling stock markets. As long as the risk appetite moves in a normal area, the markets should behave relatively stable. We have found that only with extreme values or strong changes does an increase in volatility have to be expected.
More information on the indicator can be found on www.rhyadvisors.ch