Stock prices globally have remained unusually buoyant in the face of well-known health and financial risks. Thanks largely to aggressive global monetary and fiscal stimulus starting in March and still going on (though arguably fading), risk appetite jumped dramatically following the severe but relatively brief sell-off from late February to late March.
Most recently, however, several metrics of global risk appetite that we track have either plateaued or weakened. This coincides with a reduction in the pace of central bank activity and growing uncertainty about further fiscal stimulus programs, especially in the US. It also coincides with the recent turn higher in the growth of COVID-19 cases in the US and globally.