Safe Haven

Safe Haven
An investment that is expected to retain its value or even increase its value in times of market turbulence. Safe havens are sought after by investors to limit their exposure to losses in the event of market downturns. However, what are considered safe havens alter over time as market conditions change, and what appears to be a safe investment in one down market could be a disastrous investment in another down market.

Fortuitously timed buy and sell decisions can make an investment appear to be a safe haven when it may not actually be one.

Gold is typically considered a safe haven when currency markets are volatile. United States Treasury Bills are also considered a safe haven even in a tumultuous economic climate because they are backed by the full faith and credit of the U.S. government. In the forex market, the Swiss franc is considered a safe haven currency. Finally, if an entire economic sector is performing poorly but one company within that sector is performing well, its stock could be considered a safe haven.

Investment dictionary. . 2012.

Look at other dictionaries:

  • safe-haven — ˌsafe ˈhaven adjective safe haven currency/​bond/​investment etc FINANCE a currency, bond, or investment that has few risks: • Dealers moved to the dollar as the traditional safe haven currency (= one that is unlikely to lose value ) . • The… …   Financial and business terms

  • safe haven — ˌsafe ˈhaven noun [countable] COMMERCE FINANCE a place for business where there are few risks, and where it is safe to invest your money etc: • In times of political turmoil, investors seek a safe haven for their funds. * * * safe haven UK US… …   Financial and business terms

  • safe haven — safe havens 1) N COUNT If part of a country is declared a safe haven, people who need to escape from a dangerous situation such as a war can go there and be protected. Countries overwhelmed by the human tide of refugees want safe havens set up at …   English dictionary

  • safe haven — noun An area, esp in a war zone or a country with internal conflict, set aside for the protection of ethnic or religious minorities • • • Main Entry: ↑safe * * * ˌsafe ˈhaven f96 [safe haven] noun a place where sb can go to be safe from danger or …   Useful english dictionary

  • safe haven — n a place where someone can go in order to escape from possible danger or attack provide/offer/create a safe haven (for sb) ▪ The Prime Minister wanted to create a safe haven for the refugees …   Dictionary of contemporary English

  • Safe haven — may refer to: * Safe haven law, for the decriminalization of leaving unharmed infants with statutorily designated private persons so that the child becomes a ward of the state * Safe harbor …   Wikipedia

  • safe haven — noun 1. ) count a SAFE AREA 2. ) uncount protection given by a country to someone from another country who is in danger because of a war or other serious problems in their own country …   Usage of the words and phrases in modern English

  • Safe Haven —    The safe haven was a temporary small area in northern Iraq around the city of Zakho just over the border from Turkey. In this area the United States and several of its Gulf War allies established a place where Kurdish refugees could return and …   Historical Dictionary of the Kurds

  • safe haven — UK / US noun Word forms safe haven : singular safe haven plural safe havens 1) [countable] a safe area 2) [uncountable] protection given by a country to someone from another country who is in danger because of a war or other serious problems in… …   English dictionary

  • safe haven — /seɪf ˈheɪvən/ (say sayf hayvuhn) noun 1. a safe harbour or refuge as for a boat during a storm. 2. any place of safety and refuge in an otherwise unsafe situation: their home was a safe haven for rebel leaders during the war. 3. a reliable… …   Australian English dictionary