When big outlier events, like those happening this year in North Africa, appear we often get questions about trading safe-haven investments like gold, silver, bonds and even oil. However, are those assets really all that safe? A lot of it depends on the time-frame you are trading as well as your risk tolerance and diversification, but we have found that fear-based trends tend to be very risky and unstable unless they are confirmed by significant fundamental changes.
In today’s Ask the Expert we discussed these issues in the context of the current rally in safe-haven investments, and talked through a few ways you can look for confirmation of these trends. Knowing how risky the rally in oil, gold, or silver is will help you pick the right strategy and set appropriate expectations.
[WEBINAR RECORDING] Safe-Haven Investments: How “Safe” Are They?
We discussed several stocks during today’s session – including:
- Silver (SLV)
- Hewlett Packard (HPQ)
- S&P 500 (SPY)
- Eaton Vance (EV)
Image courtesy zigazou76.