Risk-On Is Back as Rally-Hungry Bulls Set Aside Trade Fears
- ‘Investors are potentially positioning for a snapback’
- Evidence of optimism in junk bonds, risky stocks, volatility
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The fiercest rally in U.S. stocks and corporate bonds since January showed bullish traders are ready to run wild.
By some measures, Tuesday was the most risk-on day this year following a painful month of losses spurred by U.S. trade aggression and concern the Federal Reserve wasn’t willing to support the economy. The optimistic wagers could be seen across asset classes, becoming the dominate force in everything from tech stocks to junk bonds to volatility markets.