Difference between revisions of "RoRo"
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For example, in a "risk-off" mindset caused by perceived political instability many investors might move their money into low-yield but very safe financial instruments, such as highly rated bonds, or even into [[gold]]. | For example, in a "risk-off" mindset caused by perceived political instability many investors might move their money into low-yield but very safe financial instruments, such as highly rated bonds, or even into [[gold]]. | ||
| − | This headline by Reuters on June 6, 2017, captured the concept: "Asian stocks slip as risk-off sentiment grips markets."<ref name="R"> | + | This headline by Reuters on June 6, 2017, captured the concept: "Asian stocks slip as risk-off sentiment grips markets."<ref name="R">https://www.reuters.com/article/us-global-markets-idUSKBN18Y02T</ref> The article explained what can cause a flight to more secure investments due to "a risk-off sentiment":<ref name="R"/> |
{{cquote|Gold and sovereign debt are set to build on solid overnight gains while Asian stocks are likely to slip on Wednesday as investors reduce risk before several major political and economic events later this week.}} | {{cquote|Gold and sovereign debt are set to build on solid overnight gains while Asian stocks are likely to slip on Wednesday as investors reduce risk before several major political and economic events later this week.}} | ||
== References == | == References == | ||
<references/> | <references/> | ||
[[Category:Finance]] | [[Category:Finance]] | ||
Latest revision as of 19:38, September 26, 2018
Risk-on, risk-off (RoRo) investing describes the tendency of money to flee away from risk investments, such as the stock market, amid a higher risk financial or political environment.
For example, in a "risk-off" mindset caused by perceived political instability many investors might move their money into low-yield but very safe financial instruments, such as highly rated bonds, or even into gold.
This headline by Reuters on June 6, 2017, captured the concept: "Asian stocks slip as risk-off sentiment grips markets."[1] The article explained what can cause a flight to more secure investments due to "a risk-off sentiment":[1]
| “ | Gold and sovereign debt are set to build on solid overnight gains while Asian stocks are likely to slip on Wednesday as investors reduce risk before several major political and economic events later this week. | ” |