Introduction In the world of investing, understanding how different assets behave during periods of risk appetite (risk-on) or risk aversion (risk-off) is crucial for constructing a well-diversified portfolio. Risk-on assets tend to perform well when investors are optimistic and willing to take on more risk, while risk-off assets tend to thrive during times of uncertainty or market downturns. This article will explore the concept of risk-on and risk-off assets and…