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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.

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