A more detailed description of this indicator can be found here.
The Risk-Tolerance indicator rose to .882 in January from .860 in December. The indicator ranges from -1.0 to +1.0 and remains very bullish.
The Risk-Tolerance indicator is based on the volatility spread between traditionally risky equities, and those considered to be traditionally safe. Positive values indicate that investors are exhibiting a tolerance for risk, while negative values indicate risk averseness in the market.
4-year and 17-year charts of the indicator are shown below, alongside the S&P 500 index.