Safe-haven assets are typically sought during times of market volatility or economic uncertainty. These assets tend to retain or appreciate in value when other investments, such as equities, decline. Common characteristics include low correlation with riskier assets, relative liquidity, and often a historical performance that demonstrates stability. Safe-haven assets are usually backed by strong fundamentals, such as government support or intrinsic value, and include assets like gold, US Treasuries, and currencies such as the Swiss franc and Japanese yen. Investors often allocate to safe-haven assets to hedge against market downturns and preserve capital.
Risk Management