Risk off意思

"Risk off" is a term used in the financial markets to describe a situation where investors are reducing their exposure to risky assets and seeking safer investments. This typically happens when market conditions are volatile or uncertain, and investors become more risk-averse.

When risk off sentiment prevails, investors tend to move their money into safer assets such as government bonds, gold, or cash. This shift can lead to a sell-off in riskier assets like stocks, commodities, and high-yield bonds, as investors are less willing to take on potential losses.

The opposite of risk off is "risk on," which describes a market environment where investors are more willing to take risks and invest in potentially higher-yielding but riskier assets. Risk on periods often occur when the economy is strong, market conditions are stable, and investors are optimistic about the future.