Gold is often thought of as the safe haven asset. This long term chart hopes to show how gold has performed during major market declines.
Gold performed very well during the Great Depression and during the GFC until March 2009 when it became prudent to go long stocks and close gold positions.
But in a number of recessions, gold spiked at the start and then dropped which suggests it isn't a reliable safe haven. January 1980 and the Covid crash are two examples but there are several on the chart.
I'm looking a a basket of alternative safe havens for the next recession including: Gold, Bitcoin, US treasury bills (BIL), US long end bonds (TLT) , UUP , and a little bit of SH . Others could include the Japanese Yen and the Swiss Franc or perhaps even some assets that look like they'll be unaffected but I don't currently track them.
Gold performed very well during the Great Depression and during the GFC until March 2009 when it became prudent to go long stocks and close gold positions.
But in a number of recessions, gold spiked at the start and then dropped which suggests it isn't a reliable safe haven. January 1980 and the Covid crash are two examples but there are several on the chart.
I'm looking a a basket of alternative safe havens for the next recession including: Gold, Bitcoin, US treasury bills (BIL), US long end bonds (TLT) , UUP , and a little bit of SH . Others could include the Japanese Yen and the Swiss Franc or perhaps even some assets that look like they'll be unaffected but I don't currently track them.
Absorbing info with every cycle