Risk On / Risk Off

AmericaFirst added Risk On / Risk Off overlays to the Income, Defensive Growth and Seasonal Rotation funds in 2019 in response to under-performance in 2018.  These "overlays" are the result of hundreds of hours of extensive research whose sole purpose is to minimize downside when the investment markets free-fall.

What is Risk On / Risk Off?

Risk-on / risk-off is an investment setting in which

price behavior responds to and is driven by changes in

investor risk tolerance. Risk-on risk-off refers to changes in investment activity in response to global economic patterns. During periods when risk is perceived as low, the risk-on risk-off theory states that investors tend to engage in higher-risk investments; when risk is perceived to be high, investors have the tendency to gravitate toward lower-risk investments.

What are typical Risk On Assets?

Stocks are the most obvious, especially those with higher prices relative to profits, or in industries that are more dependent on economic growth. For bond investors, lower-rated but higher-yielding corporate and sovereign issues are considered “risk on” assets. 

What are typical Risk Off Assets?

The most typical Risk Off asset would be U.S. Treasuries. Among currencies, the yen and US Dollar tend to rally as investors unwind equity positions. Big gains in products tied to equity volatility indexes like the CBOE Volatility Index (VIX) are a sure sign of a risk-off market as investors bid up the price of options that protect against further losses in stocks.

CHECK YOUR ACCOUNT (for direct investors)

© 2020 by AmericaFirst Quantitative Funds.



Investors should carefully consider the investment objectives, risks, charges and expenses of AmericaFirst Funds.  This and other important information about our Funds is contained in the prospectus, which can be obtained at www.AmericaFirstFunds.com or by calling us at 916-865-9070. Read the prospectus carefully before investing. 


Mutual Funds involve risk including risk including the possible loss of principal. Of course, there is no guarantee that any investment strategy will achieve its objectives.

Diversification does not ensure profit or prevent losses and there is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. The success of the Fund’s hedging strategy will also be subject to the Adviser’s ability to continually recalculate, readjust, and execute hedges in an efficient and timely manner.  An imperfect correlation between such hedging instruments may prevent the Fund form achieving the intended hedge or expose the Fund to risk of loss.

CLICK HERE for a copy of the AmericaFirst Customer Relationship Summary.

The AmericaFirst Quantitative Funds are distributed by Arbor Court Capital.