What is a Safe Haven?

A safe haven is an investment that is expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns. However, what appears to be a safe investment in one down market could be a disastrous investment in another down market, and so the evaluation of safe haven investments varies. A safe haven investment diversifies an investor’s portfolio and is beneficial in times of market volatility.