Risk On Risk Off
Market Sentiment
Definition
Market regimes characterized by alternating periods of investor risk appetite (risk-on) favoring growth assets, and risk aversion (risk-off) preferring safe-haven investments based on economic and geopolitical conditions.
Key Points
- Risk-on favors stocks, commodities, high-yield
- Risk-off favors bonds, gold, defensive sectors
- Driven by economic and geopolitical factors
Examples
Risk-on: stocks and commodities rally togetherRisk-off: bonds and gold outperform stocksQuick Info
Category
Market Sentiment
Related Topics
safe haven assets
risk appetite
flight to quality
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