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Hard to make investment choices when markets are uncertain
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Decades-old relationships have been falling apart with buyers of US bonds and the yen frequently losing money as their stock positions are also knocked down.
PHOTO: REUTERS
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It’s an old saw on Wall Street – when stocks tank, bonds rise. But incessant price pressures have upended the truism and left investors searching for refuge.
During times of turbulence, investors typically pile into safe havens – easy-to-access assets that protect against losses – such as US Treasuries and currencies like the Swiss franc or the Japanese yen. In a perfect world, these investments are supposed to offer stable income that is the polar opposite of risky bets like stocks, particularly during market downturns, when equities sell off.
