Original subtitles

the the way in which the central banks go about things

however this is changed slightly recently especially

much as possible and keep your money safe usually some safe

differentiating factors but generally you see JPY, CHF and

this lesson and understood everything. Alright take care

with JPY in in the past two years I would say because of

haven currencies JPY CHF and the US dollar the reason for

when you're risk off you want to preserve that capital as

that is because they're usually very sort of stable especially

account. Characteristics. Low yielding assets that look to

the way you know the pandemic hit them over there so more

preserve capital acting as a hedge. And that's the most

USD as a safe haven currencies. Anyways guys I hope you enjoyed

recently in the in the past few years there's been some

previously explained this before but just to go over it

obviously going to try and hedge against that right so

about interest rates and what happens there. So if you're

that has hasn't happened in many many years, you know, a

again if there's more inflation occurring for example you're

they would much rather do that. However, when we turn risk off,

said treasury bonds, gold, cash as well and then other safe

important thing that I'm going to explain to you here.

rate on your on your savings essentially in your bank

holding onto cash as well yes you might gain some interest

recently, what we've seen is with coronavirus, something

havens. Because especially at that time you've got to think

be much incentive to keep it there, right? If they, if

They look for some that acts as a hedge against inflation. I

there's economic downturn and geopolitical issues. More

complete pandemic so what the investments at that time. As I

they're able to earn 20 percent a year on a stock market, then,

economy is booming. Large investors they want to see that

types of currencies as well people would hold onto them. Um

they're only receiving maybe that 1% interest that they're

return on investment. Because if the economy booming and

investments. And this is what they want at the time. When the

leaving in the bank. For example, there's not going to

different type of investments that we can look at. And the

especially when their markets are moving well. So obviously

characteristics. High yields. Much higher return on

more risky. So it wouldn't be bonds essentially. Uh some

**** oh I just put the same thing. But essentially what I

What the type of assets that we got. Something that's a lot

was meant to say was best investments could be the

best investments at the time, a booming economy where risky

mean? A booming economy where risky assets are rising. The

stocks, could be the cryptos, could be

safe haven currencies. So when you risk on what does that

But this is obviously something that we're going to look at in

more depth soon as well. Now to simply break it down let's look

stocks go up at the time more recently crypto for example as

that are very risky but hold on to assets that will keep them

really want to lay back and sell the assets that they can

well then when we've got risk off risk off is when investors

economic activity as well for example so this might mean

risky that require a lot more productivity a lot more

sort of in a safe haven. So you've got different types of

onto, types of treasuries that we also talked about as well.

safe haven currencies, types of commodities that people hold

at causes, best investments, characteristics and then some

assets which type of assets assets that are a lot more

in response to global economic patterns. It makes a simple

breaks down fundamentals in a simple and dissected plan. So

risk on situations investors have a high risk appetite and

you've got to understand two things. When you're risk on in

bid up the prices of assets in the market. When we talk about

So as I said it refers to changes in investment activity

approach to the marketplace because it really and truly

but just understanding what the macro fundamentals are and are

we risk off or risk off?

something that maybe you might consider on a day to day basis

you have heard and really and truly it's an easy way to break

Yes guys so welcome to the next video of the series. Um so

and I'll see you in the next lesson.

down how we see fundamentals across the world. It's not

right now we're just going to be looking at risk on versus

risk off markets. This is probably a term that many of