Risk on refers to sentiment that is willing to take risk with their capital in order to get higher return. Risk off is the opposite = the sentiment that people want to exit risk and hold cash, foregoing higher returns and/or in order to avoid losses. Within equity markets some sectors are considered risk-on, such as tech financials consumer discretionary, whilst some sectors are risk off such as industrials, utilities. In the bigger picture of global market capital flows, equities as a whole are considered risk-on.
Risk on = equities, emerging markets, crude oil, AUD & commodity currencies.
Risk off = USD, JPY, CHF, bonds
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