Wednesday, October 1, 2014

Risk Off: stock market drops 1% as investors dump risky stocks

Investors behaved as if the world had all of a sudden become more risky:

Traders said large fund managers and institutions were selling riskier investments like stocks, and fleeing into the relative safety of government bonds. Many of those investors were initially optimistic about the fourth-quarter outlook for stocks, traders said, but were changing course after weak economic data from the U.S. and Europe. Sectors seen as growth-sensitive posted sharp declines, with materials dropping 2.3% and industrials shedding 1.9%. Utilities stocks, seen as a defensive bet, climbed 0.9%.

See our past post on risk on vs. risk off trading

1 comment:

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