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The 2008 global financial crisis and COVID-19 pandemic: How safe are the safe haven assets?

ABSTRACT: We compare the performance of safe-haven assets during the Global Financial Crisis (GFC) and COVID-19 pandemic. First, regarding the GFC, we find, intermediate (weak) safe haven evidence for US dollar, Swiss franc and T-bonds (Gold, Silver and T-bills). Second, with regard to COVID, we find gold is very risky in some settings, while silver has become extremely risky. Collectively, our findings suggest that the character of safe-haven assets has changed between the crises. Therefore, investors should exercise extreme care when investing in potential safe-haven assets during times of market stress.

SUBMITTER: Cheema MA

PROVIDER: S-EPMC9329144 | biostudies-literature | 2022 Oct

REPOSITORIES: biostudies-literature

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The 2008 global financial crisis and COVID-19 pandemic: How safe are the safe haven assets?

Cheema Muhammad A MA Faff Robert R Szulczyk Kenneth R KR

International review of financial analysis 20220728

We compare the performance of safe-haven assets during the Global Financial Crisis (GFC) and COVID-19 pandemic. First, regarding the GFC, we find, intermediate (weak) safe haven evidence for US dollar, Swiss franc and T-bonds (Gold, Silver and T-bills). Second, with regard to COVID, we find gold is very risky in some settings, while silver has become extremely risky. Collectively, our findings suggest that the character of safe-haven assets has changed between the crises. Therefore, investors sh ...[more]

PMID: 36536650

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