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Question

What is a Safe Haven?

A. A safe haven is an asset that investors expect to preserve value or provide relative stability during periods of economic or financial uncertainty.

  • Safe Havens
  • Commodities
  • Currency
  • Fixed Income
  • Risk Management

Gold, the US dollar, the Swiss franc and highly rated government bonds are common examples. However, safe haven characteristics depend on the nature of the crisis, meaning an asset may provide protection in one situation but not another.