Are there any safe haven investments in the current coronavirus crisis?
No, there are not. There are just some sectors and assets that are going to lose less of their value. The healthcare, consumer staples and utilities sectors are going to lose less of their value and are most probably going go outperform the major US, European and Asian stock market indices. Healthcare, because manufacturers of pharmaceuticals will see increased demand for their products in the health crisis we are in. Consumer staples retailers will see smaller fall in demand for the essential goods they provide like bread, milk, water, fruit and vegetables. Utilities' services demand will also fall less than overall demand in the economy since people need electricity and heating to subsist and later recover their likelihoods.
Gold is an interesting case in the coronavirus disease COVID-19 crisis. Will it gain? I think, at least, gold will not lose much of its value. All the prerequisites are there: gold is a safe haven asset in times of crises, gold is a hedge against inflation and the debasement of paper money. Now, that the global central banks are printing money like there is no tomorrow, sooner or later inflation could come and the demand for gold as a natural hedge only increases. If a catastrophic economic and social crisis unfolds gold can even be used widely as a means of exchange.
Large telecommunications companies could also prove a store of value now, even be it with a limited effect. People need internet and telephones to stay employed, work from home, communicate and enjoy themselves if they are out of work.
Other companies which market capitalization could fall less than the general market are companies engaged in the production of wheat, grains, corn, soybeans and other essential foods which are vital to sustain people's livelihoods.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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