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6/19, 11:57 AM (Source: TeleTrader.com)
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Risk rises in stocks, mostly small caps: Sentix

Less absolute positioning levels in stocks, on behalf of the structure and pattern of action, was registered by Sentix. The behavioral finance analysis published on Monday revealed the German firm's headline risk appetite index rose to a reading of nearly six points under the flat line this month, a level last seen at the beginning of 2011.

"Relatively high" risk-on sentiment is continuing, the report indicated, highlighting equities of small companies. "Price gains are increasingly being used as an investment objective. In addition, investors are acting increasingly pro-cyclical," said Manfred Huebner, managing director, and noted the end of the dividend period in Europe. The styles index also follows lenience to risk in structure of portfolios. "In the past, a high level of risk taking has often been a harbinger for corrections. This time the response may be delayed as investors are only average invested in absolute terms and the alternatives are missing for many investors on the face of the zero interest rate environment," he added.

TeleTrader Newsroom / IT