How safe havens stack up as tech, energy and France fears grip markets

In recent times, investors have been flocking to safe-haven assets amid a rise in concerns over AI, the Iran conflict, and high government debt levels. However, traditional safe havens such as gold and government bonds have not outperformed expectations this year. Gold faced a sell-off following the onset of the Iran war, while government bonds have become volatile.

The US dollar has emerged as a popular safe haven, rallying 4% since the Iran war began, driven by factors such as a strong economy, higher rates, and the US's energy-exporting capability. Despite concerns about its long-term safety, the dollar could be nearing the end of a bull market, according to Societe Generale chief FX strategist Kit Juckes.

In Europe, the Swiss franc has gained traction as a safe haven, especially when Europe experiences instability. German government bonds have also shown resilience, outperforming other major economies' bonds despite fiscal concerns. Short-dated government bonds offer a more stable option due to their lower sensitivity to debt worries.

Gold, another traditional safe haven, has experienced fluctuations, with a rally in August driven by concerns over inflation and the Federal Reserve's monetary policy.