GET YOUR OWN RISK ON OFF COPY
ONE INDICATOR TRADERS NEED TO MAKE MONEY
Understanding Interest rate and how it impacts the overall share market is a critical knowledge to master
for traders/investors
RISK ON
IF interest is LOW
BOND GIVES LESS RETURN
BIG INVESTORS CHASE SHARE MARKET
RISK OFF
IF interest is HIGH
BOND GIVES BIGGER RETURN
BIG INVESTORS PUT A BIT MORE % IN BOND MARKET
SHARE MARKET SUFFER
INTEREST RATE
Determines how big investors(banks, large pension funds, finance companies) are deciding to allocate their funds
explains the disconnect between markets and reality
Are you NOT surprised why NEPSE is at all time High, when due to COVID shock, most of us are in lockdown and economic activities are halted?
Understand this relationship
Become a better trader or investor
GET YOUR OWN GUIDE
Take a deep dive
We have extensively covered this concept in-depth here and introduced Risk On Off Meter for NEPSE.
Do give it a review!
