Risk-On Trades Back on the Table
Risk-on sectors have stabilized in June, after tumbling to their lowest levels this year at the start of the month.
A risk-on trading environment implies market outlook is optimistic. During these times, investors are more willing to add risk to their portfolios. Risky investments can include material, industrial, and energy stocks; as well as commodities and currency indexes that correlate to global growth.
The Australian Dollar Index and a handful global growth ETFs highlight the rebound and steadiness of risk-on trades in June.
Though these sectors have seen healthy gains this month, they are still anywhere from seven to 14 percent off their highest levels this year. The XLI , for example, logged its 2012 high in March, while the others touched their highs of the year in February.
Here is a look at the best and worst performing S&P stocks in June.