Risk-off

Market conditions - investment - trading.

Risk-off is a broad description of the level of confidence of participants in financial markets.

Under risk-off conditions, participants have relatively lower levels of confidence in economic prospects, and lower risk appetite when making their investment decisions.

Accordingly, they will tend to favour lower-risk assets such as government bonds, and avoid relatively higher-risk assets like equities.

See also

• Bond
• Confidence
• Equity
• Financial markets
• Investment
• Macroeconomics
• Market conditions
• Risk-off asset
• Risk-on