Five defensive assets that do act as a refuge in downturns
Risk aversion is accelerating flows towards safe-haven assets, although not all defensive investments are being favoured by the latest turmoil unleashed in the financial markets.
Investors are seeking refuge assets amid financial market turmoil, but not all defensive investments are benefiting. Despite the risk aversion, gold and the US dollar are not acting as safe-haven assets, with gold prices dropping below $4,000 per ounce and the dollar weakening. In contrast, debt from countries such as Germany, Japan, and especially the US is seeing increased investment, with US 10-year bond yields falling 17 basis points.
The yen and Swiss franc are also gaining value as safe-haven currencies, with UBS predicting further gains for the Swiss franc.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
