Safe-haven asset
A safe haven is an asset sought in times of stress, expected to hold its value: gold, the yen, the Swiss franc, US Treasuries.
When fear rises, money leaves risky assets. It heads for assets seen as solid: gold, with no default risk, the Swiss franc and the yen, backed by creditor economies, and US Treasuries, which are highly liquid.
Safe-haven status is not guaranteed. The yen has sometimes fallen during stressed periods when rate differentials dominated, and gold can drop when real yields rise sharply.
Understanding these relationships helps you anticipate how markets will react to a shock, and avoid unknowingly stacking positions exposed to the same scenario. Watch how these assets behave in your own trades during periods of market stress.