The Fisher-Gartman Risk Index consists of a mix of long and short asset allocations whose overall value is expected to rise when the outlook on the securities markets and broader economy is positive and to decrease when such outlook is negative.
The current Fisher-Gartman Risk Index is above it’s one standard deviation (for the past 1 year) amid the rally in risk assets. A healthy correction in prices of risk assets seems to be in the pipeline should the Risk Index mean revert.
Plotting the same Risk Index over a longer period of time, it is evident that we are certainly not near any stages of euphoria typically seen at the end of a bull rally.
