Merryn Talks Money Is There Such a Thing as a Safe Haven?
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Jun 25, 2025 Geopolitical tensions in the Middle East can shake up investment strategies, but staying focused on long-term goals is key. The myth of safe havens like cash and bonds is examined, revealing potential risks in volatile markets. Diversification across various asset classes is highlighted as essential for resilience. Global ETFs are questioned for their US equity bias, while the role of cryptocurrencies in portfolios is debated. Finally, the conversation underscores the importance of emerging markets for recovery and growth opportunities.
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Avoid Market Timing During Crises
- Do not try to time the market during geopolitical crises by moving all money to cash or a single asset.
- Recognize cash's value loss in real terms under inflation and that diversified portfolios matter more.
Broad Diversification Is True Safety
- Cash can be a safe haven if interest exceeds inflation and tax, preserving purchasing power.
- A balanced portfolio includes some cash, bonds, gold, and equities for diversifying risk and goals.
Diversify Beyond US Market
- If your portfolio is overly exposed to the US market, reassess and diversify into cheaper markets and traditional hedges.
- Include cash, gold, and non-US equities to reduce risk and avoid expensive concentration.