Here's Why The Iran War Is Prompting A Safe Haven Rethink
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Hello, Odd Lots listeners. I'm Stephen Carroll, the host of Bloomberg's Here's Why podcast where we break down a key story in the news. We borrowed Joe for our latest episode, so we thought we'd share it with you. If you like what you hear, you could subscribe to Here's Why wherever you usually get your podcasts. Enjoy.
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I haven't seen yet a sense of, okay, where's my safe haven? Where do I go and park myself?
The US is benefiting right now from, you know, kind of the safe haven trade at the moment.
If you can find me a safe haven in this market, I'd be the first one to sign up for that.
We do see some of the safe havens seems doesn't perform as good as we expected. For example, the gold and silver, Japanese yen, the bonds.
In times of trouble, investors often look for safer ground. During previous crises, that's meant a rush into assets like US Treasuries, the dollar, the Swiss franc, or gold. But the turmoil caused by President Trump's trade tariffs last year upended the traditional safe haven trades as investors turned away from US assets, and the latest conflict in The Middle East has seen another shift. Here's why the Iran war is prompting a safe haven rethink. Joe Weisenthal, host of Bloomberg's Odd Lots podcast, joins us now for more. Joe, great to talk to you. Can you help us understand, first of all, the
The thing that investors are always looking for is some sort of asset that is not strictly correlated to growth or to risk assets. So what is a risk asset? A risk asset is an asset that goes up when things are going well. So stock market, classic risk assets. You're feeling optimistic. You think the world is gonna be good. All things equal, you want to buy more stocks. That's what a risk asset is. Then you have other assets that are characterized as safe havens. So there's something about their properties in which you expect to be paid back. You expect to hold their value even if things aren't
So what was different then during the tariff turmoil of last year? Because some of these traditional safe havens seemed a bit less attractive.
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