NEW YORK, May 16 Reuters U.S. stocks are at fresh records, bitcoin is soaring and investors are spurning insurance against portfolio declines as evidence that the economy is headed for a socalled soft landing whets market participants39; appetite for risk.

Call it the Goldilocks trade a bet that the Federal Reserve will be able to tame inflation while keeping growth from declining too rapidly. While that outcome was in doubt as recently as last month, investors have been reassured by a more recent spate of economic data including Wednesdays report showing U.S. consumer prices slowed more than expected in April.

Investors39; newfound renewed penchant for risktaking can be seen across asset classes. The SP 500 hit a new record high on Wednesday and is up 11 yeartodate as it rebounds from last month39;s decline. The Nasdaq Composite Index and Dow Jones Industrial Average scaled fresh heights as well.

Assets such as bitcoin and meme stocks, which are often seen as barometers of risk appetite though their ties to economic fundamentals are often questioned, have also soared.

Meanwhile, participants growing confidence was reflected in a survey of fund managers by BofA Global Research the firms broadest measure of investor sentiment, based on cash levels, equity allocations and economic growth expectations, stood at its most bullish since November 2021.

Investors39; appetite for risk assets appears to be on the rise, said Garrett DeSimone, head quant at OptionMetrics….