Definition
A market state where investors prefer growth and higher-beta assets as liquidity and confidence improve.
In a risk-on environment, capital flows from safe havens (cash, Treasuries, gold) into equities, crypto, high-yield bonds, and emerging markets. Indicators of risk-on include falling VIX, tightening credit spreads, and expanding central bank balance sheets. On DollarLiquidity.com, a Risk-On reading means the DLI Liquidity Score is in the bottom 20th percentile of its rolling 5-year distribution — indicating loose liquidity conditions across 10 core indicators grouped into Policy/Reserves, Funding/Plumbing, Credit/Intermediation, and Risk/Price tiers.