Allochinchu - Amma Dengudu Kathalu

A flight-to-quality is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as US Treasuries or gold. This is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits.Flight-to-quality is usually accompanied by an increase in demand for assets that are government-backed and a decline in demand for assets backed by private gents.flight-to-quality refers to a sudden shift in investment behaviors in a period of financial turmoil where investors seek to sell assets perceived as risky and instead purchase safe assets. A defining feature of flight-to-quality is an insufficient risk taking by investors. While excessive risk taking can be a source of financial turmoil, insufficient risk taking can severely disrupt credit and other financial markets during a financial turmoil. Such portfolio shift further exposes the financial sector to negative shocks. An increase in leverage and credit spread on all but the safest and most liquid assets may incur a sudden dry up in risky asset markets which may lead to real effects on econom