In its latest analysis, conveyed by Bloomberg, JPMorgan Chase & Co. highlight risks to the traditional safe-havens, like gold and Japanese Yen, due to the easy-money policies of most central banks.
John Normand from the bank said, “Defensive assets are delivering their weakest performance and therefore worst hedge protection of any equity sell-off in at least a decade,” he said. “The wall of cash some hypothesize will inevitably flow into equity, credit and EM may remain very high indefinitely.”
The bank also mentioned, “a portfolio of hedges like the yen versus all currencies, the dollar against emerging-market currencies and gold versus the greenback is still worth holding as these have delivered gains in 60% to 80% of major stock-market downturns.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.