David Thomson: The answer to the risk-on/risk-off dilemma is to hold a bit of both

7th May 2019

RISK-ON or risk-off is a relatively permanent question for many active investors that tends to have implications across the spectrum of asset classes.

Certain assets, such as equities or currencies, are perceived to be risk-on while others are believed to be safe havens – or risk-off.

The latter are generally the type of assets investors will turn to when economic or market conditions do not look favourable.

Deciding whether the environment is risk-on or risk-off is difficult enough for investors in the prevailing environment, which has seen the market distorted by quantitative easing (QE).

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