Risk-Off / Risk-On

Market regimes that describe broad shifts in investor appetite for risky assets. In "risk-on" environments, capital flows into equities, high-yield bonds, emerging markets, and speculative assets, while in "risk-off" periods, money moves to safe havens like U.S. Treasuries, the dollar, gold, and the Japanese yen. Geopolitical shocks, central bank policy shifts, and economic data surprises are common triggers for regime changes, and these rotations can happen with startling speed.