The return of risk tolerance

Sparinvest’s chief startegist, David Bakkegaard Karsbøl, points out in his May report that the leading indicators have peaked and that we are now in a deceleration phase.

Therefore, according to the leading indicators, investors should reduce their exposure to shares. As the MomVol indicator is still over 0.6, and thus still ‘overweight’ shares, it is his assessment that investors should be ‘neutral’ with regard to their long-term equity exposure.

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