Working Paper

Risk-on/Risk-off: Measuring Shifts in Investor Sentiment


Abstract: A new, high frequency measure of investor sentiment outperforms similar measures in forecasting investment activity in emerging markets.

Keywords: risk-on/risk-off; global investor risk aversion; extreme events; tail risk; portfolio reallocation; return predictability;

JEL Classification: F21; F36; F65; G11; G12; G15; G23;

https://doi.org/10.18651/RWP2024-12

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Research Working Paper

Publication Date: 2024-11-26

Number: RWP 24-12