Is Voracious Risk Appetite A Contrarian Indicator?

Needless to say, and notwithstanding a little "friction" around Fitch's decision to downgrade America, risk appetite is pretty buoyant. So buoyant, in fact, that Goldman's Risk Appetite Indicator sits near YTD highs, not surprising given re-risking across both systematic and discretionary investor cohorts, the late-May inflection in US equity flows and individual investor sentiment, and the generalized sense that record highs for the S&P are "inevitable." One question investors are grappli