Safe Haven

Dictionary Says

Definition of 'Safe Haven'

An investment that is expected to retain its value or even increase its value in times of market turbulence. Safe havens are sought after by investors to limit their exposure to losses in the event of market downturns. However, what are considered safe havens alter over time as market conditions change, and what appears to be a safe investment in one down market could be a disastrous investment in another down market.
Investopedia Says

Investopedia explains 'Safe Haven'

Fortuitously timed buy and sell decisions can make an investment appear to be a safe haven when it may not actually be one.

Gold is typically considered a safe haven when currency markets are volatile. United States Treasury Bills are also considered a safe haven even in a tumultuous economic climate because they are backed by the full faith and credit of the U.S. government. In the forex market, the Swiss franc is considered a safe haven currency. Finally, if an entire economic sector is performing poorly but one company within that sector is performing well, its stock could be considered a safe haven.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Swissie

    A slang term for ...
  2. Gold/Silver Ratio

    A ratio (X:1), ...
  3. Contra Market

    A move against ...
  4. Volatility

    1. A statistical ...
  5. Tax Haven

    A country that ...
  6. Treasury Bill - T-Bill

    A short-term ...
  7. Operating Income

    The amount of ...
  8. Risk

    The chance that ...
  9. Earnings Before Interest & Tax - EBIT

    An indicator of ...
  10. Inventory Turnover

    A ratio showing ...

Articles Of Interest

  1. A Look At Government Bonds And National Debt

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  2. The History Of The T-Bill Auction

    Learn how the U.S. found the perfect solution to its debt problems, and ended up creating one of the largest markets in the world.
  3. The Swiss Franc: What Every Forex Trader Needs To Know

    Find out what you need to know before you start trading the Swiss franc.
  4. Diamonds: The Missing Commodity Derivative

    While they may be "a girl's best friend", diamonds haven't made it to the futures market - yet.
  5. Forex Currencies: The USD/CHF

    Learn about the most traded currencies and the strategies used to trade them.
  6. 20 Investments: The Money Market

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  7. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  8. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  9. How To Find P/E And PEG Ratios

    If these numbers have you in the dark, these easy calculations should help light the way.
  10. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center