Safe Haven

A safe haven is an asset investors often turn to during uncertain or risky times. In simple terms, a safe haven is something investors see as relatively safer when markets are stressed. Safe havens are important because they can protect investors when fear rises in the market. Assets often described as safe havens include U.S. Treasuries, gold, the U.S. dollar, and sometimes defensive currencies. For example, if geopolitical risk increases and investors buy U.S. Treasury bonds, those bonds may be acting as a safe haven. A safe haven is not completely risk-free. Its price can still move, and it may not protect investors in every situation.