Safe Haven
 |
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 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. |
Related Definitions
Articles Of Interest
-
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. -
The Swiss Franc: What Every Forex Trader Needs To Know
Find out what you need to know before you start trading the Swiss franc. -
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. -
Diamonds: The Missing Commodity Derivative
While they may be "a girl's best friend", diamonds haven't made it to the futures market - yet. -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
Introduction To STRIPS
STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how. -
Equity Valuation: The Comparables Approach
The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation models: the discounted cash flow (DCF), cost and comparable approaches. ... -
Introduction to Treasury Securities
Purchasing bonds that are backed by the full faith and credit of the U.S. government can provide steady guaranteed income and peace of mind. Knowing the characteristics of each type of treasury ... -
The Basics Of The T-Bill
The U.S. government has two primary methods of raising capital. One is by taxing individuals, businesses, trusts and estates; and the other is by issuing fixed-income securities that are backed ... -
Weighted Average Cost Of Capital (WACC)
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Free Annual Reports