Investors haven’t been this eager to take on risk in over four years. Goldman Sachs’ Risk Appetite Indicator, or RAI, surpassed 1.1 during the week of May 15, reaching its highest level since 2021 and landing in the 99th percentile of all observations since 1991.

To put that in perspective: readings above 1.0 have occurred only about 2% of the time since 1950. Goldman has recorded just six instances of the RAI clearing that threshold since 1991.

The ‘double high’ phenomenon

What makes this particular surge stand out is not just the RAI reading itself, but the combination of signals firing at once. Goldman strategists are calling the current environment a “double high,” a scenario where both the RAI exceeds 1.0 and the equity momentum z-score surpasses 3.0 simultaneously.

That combination hasn’t appeared since the early 2000s.

The RAI itself is a composite measure that captures investor sentiment across multiple asset classes, including equities, fixed income, liquidity, commodities, and credit.

Back in January 2026, the RAI was already sitting at 1.09, placing it in the 98th percentile. The move from 1.09 to above 1.1 over the following four months represents a meaningful expansion of risk-taking behavior across global markets.

What history says about readings this high

Goldman’s own analysis suggests that the environment remains supportive for equities despite these elevated readings, attributing the RAI’s climb to favorable macroeconomic conditions. Goldman strategists have noted that high RAI readings have historically correlated with positive equity performance in the near term.

The bank has also flagged the potential for volatility. Sentiment extremes cut both ways. When everyone is leaning in the same direction, it doesn’t take much of an unexpected shock to trigger a rapid unwind.

What this means for investors

For equity investors, Goldman’s data suggests that macro conditions are supportive enough to justify continued exposure to stocks. The broad-based nature of the risk appetite expansion, spanning equities, credit, commodities, and fixed income, suggests this isn’t a single-sector mania.

There’s no direct mention of digital assets in the bank’s risk appetite framework. During the last time the RAI was at these levels in 2021, crypto markets were in the middle of a historic bull run, with Bitcoin and Ethereum hitting all-time highs amid a flood of institutional interest.