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