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Safe Haven

A safe haven is an investment that retains or increases in value during periods of market turbulence or economic downturns. Safe haven assets provide a refuge for investors seeking to protect their capital during times of uncertainty. Common safe haven assets include gold, U.S. Treasury bonds, and the Swiss franc. These assets are perceived as stable and less volatile during crises, making them attractive to risk-averse investors.

Example

During a global financial crisis, investors may buy gold as a safe haven to shield their portfolios from stock market losses.

Key points

• Investments that retain or increase in value during market downturns.

• Common safe haven assets include gold, U.S. Treasury bonds, and the Swiss franc.

• Attractive to investors seeking protection during economic uncertainty.

Quick Answers to Curious Questions

Safe haven assets provide stability and help protect portfolios from losses when other investments are volatile or declining in value.

Gold, U.S. Treasury bonds, and certain currencies like the Swiss franc are commonly used as safe havens.

They offer a way to preserve capital and reduce portfolio risk, providing security during periods of economic uncertainty.

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