Risk appetite in the markets record high

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bushi

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http://twitpic.com/bvdrat

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Quote from the tweet above:

"The professionals haven't been this bullish for almost 20 years. What could possibly go wrong?"


You can see on the graph, that the risk appetite is the highest in 20 years, and touching all-time highs (on record). If this is not a flashing red light & prelude to a rapid reversal/crash, I don't know what is. Global economy is on life support, yet traders are willing to take highest risks on records - the very definition of malinvestment and reckless behaviors.

Question (homework ;)): what happens, when trend reverses (and/or crashes), and people are getting risk averse in the financial markets, what assets classes benefit?

It seems to me we will be welcoming new members here all the time in the foreseeable future :)

:popcorn:
 
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Come and see the moral hazard inherent in the system...
 
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