Safe Haven

A safe haven is 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) such as the US are also seen as safe havens. In the currency market, the Swiss franc and Japanese yen are generally considered safe havens. It’s important to note that investments considered Β safe havens change over time as market conditions change, and what appears to be a safe haven investment at one point in time can be much riskier at another.

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