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General TradingR
Risk Aversion
A tendency among investors to prefer lower-risk investments and avoid uncertainty, even if it means accepting lower potential returns. Risk-averse behavior typically increases during periods of economic uncertainty or market turmoil.
Example
“During the banking crisis, risk aversion spiked as investors dumped equities and poured money into U.S. Treasuries and gold, pushing the 10-year yield sharply lower.”