Skip to main content

Safe-haven assets(GLD) are flowing into the market?



On March 9, 2020, the US Dow Jones Index plunged more than 2,000 points, the U.S. stock market crashed, the investment market was full of fear, and market funds flowed into those safe-haven assets? With the spread of the epidemic, the market's risk aversion has continued to increase, and the stock market has continued to fall. As an investor, to reduce investment risks, you must buy safe-haven assets, reduce the purchase or sale of assets in the stock market, and avoid a sharp decline in the stock market, which will cause serious losses.

When market risks continue to increase, investors will continue to buy safe-haven assets. Investors should pay attention to the following several safe-haven assets and use them as safe-havens.

Dow Jones Index

The first safe-haven asset is gold. Gold(GLD), as a traditional anti-inflation commodity, has always been the preferred safe-haven asset for investors.
GLD

The second safe-haven asset is the Japanese yen. Because the Japanese yen is a low-interest currency, the market economy situation is good, and the investment sentiment is optimistic. Investors will borrow the yen and then invest in high-interest assets or invest in high-risk high-return Activities, funds flow out of the yen. When the market economy worsens, investment sentiment is panic, and investors no longer carry out high-risk investment activities, they will repay the yen and capital flows into the yen.
USD/JPY

The third safe-haven asset is the Swiss franc, which is also a low-interest currency. The situation of the Swiss franc is similar to that of the Japanese yen. Switzerland is a rich and stable country, so the Swiss franc is a traditional safe-haven asset.
USD/CHF

The fourth safe-haven asset is U.S. bonds. The U.S. is the world's most powerful economy. The U.S. economy has been developing steadily. As long as investors hold U.S. Treasury bonds, they will obtain stable investment returns.
BOND

The fifth safe-haven asset is the US dollar, which, as a global settlement currency, is hard currency. When the economic crisis comes, investors will also choose to hold USD as a safe-haven asset.
DXY

The above several safe-haven assets are the market's economic recession, market sentiment panic, and capital inflows. When the prices of several safe-haven assets continue to rise, it means that the stock market has entered a bear market. Investors should avoid excessive investment activities, reduce investment risks, and choose lower-risk safe-haven assets.

Comments

Popular posts from this blog

The five stages of company growth!

company Many people who study stocks will analyze the fundamentals of the stock, such as viewing its performance report, PE, PB, PEG, debt ratio, dividend ratio, cash flow, ROE, EPS growth, etc. I don't know if you tried it. After performing many basic analyses, you will feel that the prospects for a particular stock are very good.  You have even read the analysis reports of many large banks, or listened to the analysis of many market participants and obtained a consistent high evaluation.  Then, you will think that this stock will grow in the future, so you buy it and think that you can use this stock to create a better future from now on, and the final development of the story is the opposite of the fact that the development direction will eventually Put you in trouble or lose money. I will not deny the importance of basic analysis, because, in addition to focusing on technical analysis, I am also very concerned about the company's basic factors. I am an investor fo...

Many companies will China close in 2020?

Starting in March, all walks of life in China began to resume work. People stayed at home for more than two months. Many people's moods changed from tension to leisure, and now they are anxious.  It's not just the bosses who are anxious. Many employees find that their rents and mortgages are still being paid, the holidays are extended, they can't go to work, and their salaries aren't. Whenever there is no money it is a big problem. More than 700 companies closed down in February, but getting fewer wages is also better than the company suddenly closing down. In February, more than 700 companies have closed down, and this number should be exceeded.  Statistics show that more than 55% of catering businesses in China have resumed work, but compared to the same period last year, affected by the epidemic, 78% of catering companies have lost more than 100% of their operating income, and another 16% of them have lost over 70%.  This year's sudden outbreak, the impact...

Will China's economy recover as the epidemic is under control?

During the Chinese Spring Festival, novel coronavirus broke out in Wuhan, and the Chinese stock market was hit hard. Subsequently, the Chinese government quickly took strict measures to block Wuhan, a city with a population of tens of thousands of people, to prevent the further spread of the epidemic, and to take corresponding epidemic prevention measures in other cities.  When the worst of the epidemic had already occurred, the Chinese stock market quickly rebounded. As the number of infections continues to decline, China's Shanghai Composite Index is expected to rise further. Sars Period Looking back on similar events in the past, the SARS epidemic in 2003, the stock market also made a short-term decline, and then the SARS epidemic was brought under control, the stock market immediately went up for a long time. According to past historical data, the impact of the novel coronavirus epidemic on the stock market may be short-lived. China Fund Capital Flow Howeve...

Cloudflare's 4Q 2021 earnings report

 Just took a look at Cloudflare's (NET) 4Q 2021 earnings report. Cloudflare is in an area that covers several hot spots, including content delivery networks, i.e. CDNs, cloud computing, and cybersecurity. For the Cloudflare quarterly report, here is a summary: 1) Revenue of $194 million (then expected 4Q revenue in the range of $184 to $185 million), up 52% year-over-year ($172 million in 2021, up 51% year-over-year). 2) The number of customers continues to grow rapidly, with the total number of customers has reached 1416 (1260 in the previous quarter). 3) Non-GAAP gross margin was 79.2% vs. 78.1% in the same quarter last year (vs. 79.2% in 3Q vs. 77.3% in the same quarter last year.) Non-GAAP net income has started to turn around, meaning it has started to be profitable. 4) Revenue is expected to be in the range of $205 to $206 million in 4Q. That works out to about 6% YoY growth. Cloudflare had good results this time, beating its previous guidance. Revenues are still growing at a...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

AMZN stock forecast 2025: Amazon's main advantages

  On July 6, after the US stock market opened, Amazon broke through $3,600, a record high.  Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through.  Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks.  Amazon's main advantages are:  1. Amazon's current GMV is only half that of Alibaba.  Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States.  Amazon e-commerce is far from saturated in the United States.  2. Cloud computing has unlimited potential.  As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future.  3. The international ...

Catherine Wood's Disruptive Innovation ETF: Is ARKK worth buying?

  ARKK ETF by Catherine Wood  Catherine Wood's Disruptive Innovation ETF  Warren Buffett is a stock god that everyone respected in the past, but in the past year, the female stock god Catherine Wood has become famous for the rising trend of technology stocks, and his head completely overshadows Buffett.   Therefore, this time I want to talk to you in detail about the prestigious history of this female stock god.  Catherine Wood founded ARK Investment in 2014 and listed the funds under her management under Exchange Traded Funds to facilitate investors to buy and sell, but the management fee is as low as some passive funds that track an index, about 0.75% per year.  Ark Investment launched 4 ETFs in September and October 2014. The themes are Next Generation Internet, Automation Technology and Robots, Innovative Technology, and Genetics.  Among them, Innovative Technology is currently the flagship ETF of Ark Investment and the most most popular ETF w...

Disney stock forecast 2025: Is it time to buy now?

  The much-watched Disney released its second quarter financial report this year.  Benefiting from the strong recovery of theme parks and the rapid growth of streaming media business, its net profit and revenue both beat expectations.  Disney's stock price rose 5% after the market.  Let's take a look at the highlights of Disney's earnings this quarter.  In the second quarter, Disney’s total revenue reached 17.02 billion US dollars, exceeding analysts’ expectations of 16.76 billion US dollars, a year-on-year increase of 45.5%.  Net profit turned from loss to profit, from a loss of US$4.721 billion last year to a profit of US$918 million.  From the perspective of departmental business, Disney Parks, Experience and Products departments have brought a boost to the company's revenue.  Since the economic restart, Disney's theme parks, cruise ships and offline merchandise retail businesses have all been greatly improved. The quarterly revenue of these bu...

Look for growth stocks, and let profits run!

let profits run Due to the recent rapid decline in the global stock market, many investors have suffered severe losses in the books they hold. How much money has been lost? What should I do now? Should the stock be sold immediately? Or wait for it to rebound before selling? I usually ask him, why would you buy stocks? Why do you still hold stocks? Sometimes they will tell me very frankly, because after listening to XX masters, XX experts, XX financial performances, or a friend, a relative, or a neighbor telling them, the stock price is very cheap now, so fast Click to buy, or after the stock has fallen for some time, these people will say that the current stock price is cheaper, and it should be evened down, and it will go up no matter what. If you are holding a lot of stocks in the stock market disaster because of this, you have already suffered heavy losses at this moment. I hope this is the last time you are recruited in the stock market. First, let's look at a practica...

SNAP stock forecast 2025: Is it time to buy Snapchat?

In the US social networking industry, there are four listed companies. They are the famous Facebook, former US President Trump's favorite information publishing platform Twitter, photo sharing and social networking site Pinterest, and Snapchat, which is popular among young people. Most of them are between 25 and 55 years old and have used Facebook products more or less. But it is very new to Snapchat. In fact, Snapchat is a powerful challenger for Facebook. The greatest charm lies in rapid growth. In the past year, the stock price has risen from US$20 to more than US$70, and the company is now worth more than US$100 billion. Snap was founded in 2010 and is headquartered in California. The company's flagship product, Snapchat, is photo sharing and social networking software. The software comes from a "burn after reading" photo-sharing application developed by two students from Stanford University. In April 2011, founder Evan Spiegel introduced the idea of ​​his final p...