Risk-on/Risk-off Trading: Understanding the Relationship Between Risk Assets and Safe-Haven Assets to Gauge Market Sentiment
Introduction In the world of financial markets, understanding the relationship between risk assets and safe-haven assets is crucial for traders and investors. Risk-on/Risk-off trading is a strategy that relies on gauging market sentiment by observing the behavior of these two types of assets. Risk assets, such as stocks and commodities, tend to perform well when investors are optimistic and willing to take on higher levels of risk. On the other…


