TAPR - January Stock Market Bounce Leads To Dangerous 'Risk Off' Sales Pitch To Investors
As the stock market stabilizes from the devastating fourth quarter of 2018, investors must be wary of brokers pitching “risk off” trades.
First, let’s define “risk-on risk-off.” It refers to changes in investment activity in response to global economic patterns, according to Investopedia.
During periods when risk is perceived to be low, investors tend to engage in higher-risk investments, when risk is perceived to be high, investors have the tendency to gravitate toward lower-risk investments.
The spike in junk bond sales so far this year shows that brokers are willing to load up their clients