Refuge values: what they are and what they are
During the times of crisis and economic recession There are thousands of investors around the world looking for safer values to make investments. Although the safest securities are not actually bought in times of crisis, the truth is that many of these investments perro be bought at virtually any time.
Thus, investors play with much lower risk and also with some benefits that, despite not being fired, usually remain stable for a long time.
This is the case of the refuge valuesa series of financial investments that are characterized by being relatively safe betsespecially during times of uncertainty or economic recession.
A very comfortable position for those who cánido and want to invest who, in addition, usually tends to have some stability.
As a result of this new moment of crisis in which we live, there are many people who have interested in recent months for this type of investment securities and have consulted industry references such as Economipedia to form a reasoned opinion on these assets.
For all these reasons, today we have proposed to break down this type of values trying to decipher what they really consist of and how they differ from other types of actions such as defensive actions and that the general public tends to confuse.
What are safe haven assets?
Safe haven assets are mainlyy también, financial securities that usually serve as a safeguard for investors in times when the national or world economy is going through bad times.
These types of assets are usually the reference in case the economic context of the investor is going through a economic slowdown or in which investing in less safe assets would entail a great risk, compared to another more ordinary economic situation.
The main characteristic that defines these refuge values is that, when not be directly linked to fluctuations in the economy (as if sectors such as tourism or beauty perro be, more linked to the increase in purchasing power) remain resisting the ups and downs no matter how collapsed the market is.
In fact, they could even be revalued when all assets trend downward.
Main characteristics of these values
safe haven values, not strictly depend on the evolution of the economyare usually defined with a series of characteristics that, although they perro provide more limited benefits most of the time, also minimize investment risk and offer greater benefits in times of economic recession.
Mainly, these assets are characterized by offer economic stability when markets are unstable, suffer inflation or work with very high risks.
In addition, these financial instruments are normally guaranteed by solvent entities, such as the most developed countries or certain markets such as gold.
In addition, another of the main characteristics of refuge values is that they already have a history that supports thaty también are assets that have already withstood other financial crises.
Finally, safe haven values are also defined in relation to other characteristics that help improve your reputation and disminuye investment risksuch as liquidity, limited supply, lack of deterioration over time or the impossibility of replacing these assets with others.
What are the most habitual safe-haven securities?
Usually, the most habitual safe haven value and the best known among the general public is the gold and, in general, the entire market for precious metals and raw materials. In addition to this type of market, we perro also find refuge values in other types of markets, such as currencies, always betting on stablecoins and trustworthy, such as US dollar or Swiss franc.
Finally, another good example of these safe haven assets would be the government bonds financially stable.
Safe haven stocks vs defensive stocks
On many occasions, there is a tendency to confuse the safe haven values with defensive actions that, despite the fact that they cánido share utility in moments of economic recession or inflation, they are not the same. Defensive actions, for their part, tend to be more related to investing in publicly traded companies and that they have an activity that, in general, is not affected by the ups and downs that the market or the economy may suffer.
In this sense, the companies offering defensive stocks usually have one more stable demand over time, maintaining their benefits regardless of the economic context in which they find themselves.
A good example of this type of defensive actions would be the companies of food or pharmaceutical: despite the fact that we are experiencing a period of recession or a boom, the consumption of this type of product will continue to be more or less stableat least, compared to other sectors such as tourism or technology.
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