The risk appetite dashboard measures whether markets are in a risk-on or risk-off regime. The CRAI composite blends equity momentum, volatility, and credit spread changes into a single reading. Individual components show where risk appetite is strongest or weakest: equities (SPY), fear (VIX), credit (HY spreads), and speculative assets (BTC) each tell part of the story.
Risk appetite drives cross-asset allocation. When CRAI is high and VIX is low, markets are complacent. When CRAI drops and HY spreads widen, the risk-off trade is on. Bitcoin adds a speculative sentiment overlay that often leads equity positioning.