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Haven assets lose lustre as refuge from market turmoil

Investors looking to weather the turmoil ripping through global markets are facing up to a hard truth: Havens don’t offer the protection they once did.

Gold prices used to rise during times of stress, but they have fallen more than 9% since May
Gold prices used to rise during times of stress, but they have fallen more than 9% since May

Investors looking to weather the turmoil ripping through global markets are facing up to a hard truth: Havens don’t offer the protection they once did.

A handful of assets such as government bonds, gold and oil previously acted as shock absorbers in investor portfolios, rising in value when others fell through the floor. Now, investors find these hedges are no longer dependable.

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