The safe havens losing their 'safe' status

The US dollar and Treasury bonds have previously helped investors in times of market mayhem. However, economic, geopolitical, and policy issues have undermined this safety, with investors facing new challenges. The US dollar was viewed as the go-to asset in times of uncertainty, but President Trump’s wish for a weak currency, to benefit domestic manufacturers, has created uncertainty. Russia’s invasion of Ukraine has also shaken these assets, with the freezing of Russia’s reserves in 2022 causing countries to reduce their investments in Western bonds, adding risk to Treasuries and Gilts...