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Flight to Quality
Flight to Quality
Image 1 When investors move their capital to the safest possible investment vehicle because of uncertainty in financial markets.
Image 2 An example is when investors move their money to government securities and money market funds because the stock markets are heading south. One way to find out if there is a flight to quality is when the yield on government securities falls dramatically because there is increased demand for them.



Government Security

Money Market Fund

Yield