Chart of the Week
Written by John O’Donnell, Online Trading Academy
When investors perceive increased economic risks, investment markets change. Investors tend to cut back some of the risky assets such as stocks and put more of their money in “risk-off” options which include cash, bonds and gold. This is often referred to as a ‘flight to safety’. The flight to safety which started in the fourth quarter of 2007 is reviewed here in this ‘chart of the week’ which follows the ratio of two ETFs: the aggregate bond index fund (NYSE:AGG) and the S&P 500 index fund (NYSE:SPY).
Chart of the Week video follows the Read more >> jump.
Source: YouTube