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Joshua Raymond, chief market strategist at City Index, said: Traders bought into risky asset classes such as mining, banking and energy stocks in Europe, on optimism that Greece would secure the funding it requires from its European partners.
THE Treasury market has been wobbly, but the stock market has rallied — along with commodities, junk bonds and a wide range of other relatively risky asset classes in the United States and abroad.
The findings show how the recent boom in agricultural prices is tapering off as investors seek what they perceive to be less risky asset classes, such as US treasury bonds.
FTSE 100 We have seen strong gains in pharmaceutical and tobacco stocks today, two sectors that usually benefit when traders are looking to move away from risky asset classes.
You have to limit your exposure to risky asset classes to a level that allows you to sustain those positions even in the face of terribly adverse market conditions.
And they have widened the range of investors who can get involved in risky asset classes, such as subprime mortgages and junk bonds.Traditionally, many stodgy investors, such as pension funds, steered clear of such things because they lacked an investment-grade rating.
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"This is a very risky asset class," said Sarah Bush, an analyst at Morningstar.
'This asset class is for the brave investor' In spite of strong prospects for emerging markets, this remains a risky asset class that should be bought into in moderation by only the most sophisticated, risk-hungry investors.
They may be worried about Vladimir Putin, but they are more worried about cutting their losses.The commodity sell-off has been accompanied by a retreat from another risky asset class, emerging-market shares.
Despite the protection afforded by the government's involvement, the mutual funds are delving into an inherently risky asset class and therefore are not suitable for all investors, said Anne Kritzmire, an expert in closed-end funds at Nuveen Investments.
He sees it as a "risky asset class", but one that has earned returns of 10-12% per annum over the past 17 years.Collectors who want to keep an eye on the value of their art can turn to the Gabrius Index for help.
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