An asset expected to retain or increase in value during periods of market stress — historically including gold, US Treasuries, the Japanese yen, and the Swiss franc.
Deeper Explanation
Safe haven status is not permanent and depends on the nature of the crisis. US Treasuries are the classic safe haven during equity selloffs and growth scares — but in an inflation crisis, long-duration Treasuries are a source of losses, not safety. Gold performs best as a safe haven against currency debasement, geopolitical instability, and tail risk — but can underperform in a deflationary recession. The yen and franc benefit from "repatriation flows" when Japanese and Swiss investors bring overseas capital home during risk-off periods. Dalio's All-Weather portfolio explicitly allocates to each safe haven type to cover different crisis scenarios: Treasuries for growth scares, gold for inflationary crises, and commodity producers for supply-shock environments.
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