Safe Haven

An investment expected to retain or increase its value in times of market turbulence. Safe havens allow investors to limit their losses in the event of market downturns. Gold has traditionally been considered a safe haven, as the metal has held its value for centuries. Government bonds of major economies (that are expected to pay back their debts even in turbulent times) have also been seen as safe havens, such as the United States. In the currency market, the Swiss franc and Japanese Yen have also been considered safe havens. It is important to note however, that what investments are considered safe havens alter over time as market conditions change, and what appears to be a safe investment at one point in time can be much riskier at another point in time.

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