In my earlier article I mentioned that are a few asset classes that are considered safe haven where people flock to during times of crisis.
I did also mentioned that we should hold uncorrelated assets to reduce our losses. As stocks plummet, other safe haven assets will rise in value which will help offset some losses.
However, in the recent days, there has been an interesting (or rather terrifying) development: Most of the assets that are considered safe havens are also joining stocks in a race to the bottom.
In other words, prices of safe haven assets are falling instead of rising.
It seemed like safe havens are in a crisis in times of crisis.
Why?
Let us look at these asset classes which are considered safe havens:
BondsGoldBitcoinBonds – Security In Insecure Times?In another earlier article, I mentioned that bonds are secure assets and investors often flock
...
