Risk Assets

Risk assets are investments that can offer higher returns but also carry higher risk. In simple terms, risk assets are assets investors buy when they are willing to take more risk. Risk assets are important because they often rise when investor confidence is strong and fall when fear increases. Stocks, high-yield bonds, and some commodities or cryptocurrencies are often considered risk assets. For example, growth stocks may rise when investors have strong risk appetite. Risk assets are not guaranteed to lose money. They simply have more uncertainty and can move more sharply than safer assets.