Market volatility can shake investors’ faith, particularly in risky investments such as stocks — which is why many investors tend to shift their money towards safer investments when markets grow uncertain.
The unstable stock market, along with predictions of recession from analysts, has prompted many investors to take a more conservative approach to investing.
Safe-haven assets are favoured by investors who wish to limit their exposure to risk during times of market instability. Traders are able to prepare themselves for drastic market movements if they manage to identify the assets that are likely to appreciate.
More stable (though lower-yielding) investments can help to protect your cash during a market downturn. Some might even provide modest growth, depending on how your portfolio is structured.
If you’re seeking a place to park your money to tide through this period, this article suggests a few safe-haven assets that offer lower risks and steady returns....