In recent months, the markets have been in tumult. Although certain sectors are always volatile, the extreme nature of drops and peaks has been more exaggerated than ever. We can explain this behaviour by looking at a number of recent real-world events, a prime example being Brexit. The decision to leave saw the value of the pound drop to a 31-year low, dropped billions from the markets, and turned the worlds of many investors upside down.
Those who were the least affected were those who had prepared in advance by investing in ‘safe haven’ assets. By balancing their portfolios with these ever wise choices, they reduced their risks and preserved their profits. If you’re looking to take a leaf out of their books, then here are three of the best choices to get you started.
Gold is the original safe haven asset, and in times of volatility, its value tends to remain stable, if not increase. It offers a wide range of investment types for people to choose from, the best in terms of diversification and risk reduction arguably being bullion, gold bars, and ingots. Easily purchasable from companies like Stunt & Co., they are well worth considering if portfolio preservation is at the forefront of your mind.
Like gold, property is a wonderful investment during times of strife, and it is incredibly rare for prices to markedly depreciate. Its real world application, as opposed to the abstract nature of futures and their ilk, makes it easier to understand than many other investment types, especially for those who are new to the markets. Although most people tend to limit themselves to domestic concerns, it can be equally fruitful to look at overseas propositions, in order to determine the assets that will deliver the most bang for your buck.
#3: The Japanese Yen
Although the currency markets are notoriously tempestuous, one investment choice flouts the normal rules: the Japanese yen. Universally considered to be a safe haven asset, it can be a wonderful addition to your portfolio during times of trouble, helping to create a balanced and diverse whole. For those looking for something less physical to put their profits into, it really is a perfect choice.
When the markets are marred by misfortune, it’s not enough to sit back and wait for the storm to pass. Most successful investors instead choose to invest in assets like those listed above, and if you’re looking to replicate their success for yourself, take a leaf from their book, and add one of these three to your portfolio.