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Risk-On Trades Back on the Table

A fighting bull runs behind participants during the San Fermin running of the bulls on July 12, 2011 in Pamplona, Spain.
Pablo Blazquez Dominguez | Getty Images
A fighting bull runs behind participants during the San Fermin running of the bulls on July 12, 2011 in Pamplona, Spain.

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.

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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.