00:00 Speaker A
In times of uncertainty, safe haven assets can be a good source of security for you and your portfolio, and we’re breaking down the basics. So let’s start simple. What is a safe haven asset anyway when you hear about it? Well, it’s an investment that’s believed to hold on to, or even gain value during periods of economic uncertainty. There are a few different types of safe havens, so let’s break those down. First up, government bonds. US bonds are considered a safe investment because they’re backed by the US government with a guaranteed return of your initial investment, plus interest. They’re also less prone to the same fluctuation as stocks or equities. Next, currencies that generally remain stable are considered havens. Some examples include the Swiss franc, the Japanese yen, and the US dollar. However, the US dollar status has been under pressure recently, concerns growing that if tariffs continue to move forward, that could slow US economic growth. That said, many investors still expect the dollar’s appeal to rise as global instability deepens. And finally, we must talk about gold. Unlike stocks or currencies, gold’s value is not tied to any one government or economy, granting its stability. Central banks also hold gold reserves, which strengthens its status as well. You can see gold here, down just a little bit today, but still holding above 3,000.