Goldman Sachs Analysts Observe Rising Risk Appetite Amid Geopolitical Tensions

Investor risk appetite has increased from December last year to January this year, despite escalating geopolitical risks. According to ChainCatcher, Goldman Sachs Research analysts have noted a sharp rise in margin account leverage since April last year, reaching its highest level since 2021. Retail investors are increasingly diversifying their portfolios beyond the 'Big Seven' U.S. stocks, expanding their exposure to different regions. Additionally, there is a growing trend of short bets on the VIX volatility index, with the ratio of short to long positions hitting a ten-year high, indicating a general market expectation of reduced volatility.