Wall Street Words word of the day = Safe Haven

Hello YouTube, Todd Ault here, and Welcome to Wall Street Words! Today's Wall Street term is "Safe Haven" Safe havens are important for investors and traders, across the board, to understand. Safe haven is somewhere an investor can put their money with the hope that it's a safe place to be during traumatic downturns in the market. One of those safe havens could be the U.S. Treasury market, short term bills, T-bills and notes. Those are places that institutions consider to be safe havens when there's no other place to put the capital. You can also look for safe havens to be gold, other types of precious metals. Generally, where investors look to put money during times of dramatic moves in the marketplace. Safe Haven. Definition - A safe haven is an investment that diversifies an investor’s portfolio and is expected to retain or increase in value during times of market turbulence or volatility. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns, and while most assets are falling in value, safe havens either retain or increase in value. However, what appears to be a safe investment in one down market could be a disastrous investment in another down market, and so the evaluation of safe haven investments varies, and investors must perform ample due diligence. "Most times, when the market rises or falls, it is for a short period of time. However, there are times, such as during an economic recession, when the downturn of the market is prolonged. When the market is in turmoil, the market value of most investments falls steeply. While most assets are falling in value, safe havens either retain or increase in value. There are a number of investment securities that are considered to be safe havens. Some of them include: Gold: For years, gold has been considered a store of value. As a physical commodity, it cannot be printed like money, and its value is not impacted by interest rate decisions made by a government. Because gold has historically maintained its value over time, it serves as a form of insurance against adverse economic events. Other commodities, such as silver, copper, sugar, corn, and livestock, are negatively correlated with stocks and bonds and serve as safe havens for investors. Treasury bills (T-bills): These debt securities are backed by the full faith and credit of the U.S. government and, hence, are considered safe havens even in tumultuous economic climates. T-bills are considered to be risk-free, as any principal invested is repaid by the government when the bill matures. Investors, therefore, tend to run to these securities during times of perceived economic chaos. Defensive stocks, examples of defensive stocks include utility, healthcare, biotechnology, and consumer goods companies. Regardless of the state of the market, consumers are still going to purchase food, health products, and basic home supplies. Therefore, companies operating in the defensive sector will typically retain their values during times of uncertainty, as investors increase their demand for these shares." In today's world, knowledge is powerful and I'm here to share my 30+ years of Wall Street experience with you. Wall Street can definitely be intimidating for a lot of people, so I'm super excited to announce our launching of "Wall Street Words." Whether you are an entrepreneur just starting your Business, or are a seasoned Business owner, like myself, Wall Street Words with Todd Ault will be surely become your new favorite channel. I've had a lot of personal success when investing or trading stock and I want to share these Wall Street terms to help educate you, the viewer when it comes to the NYSE aka the New York Stock Exchange. My goal is to provide you with new information and real world examples of trading and market terms, phrases, forms needed by the SEC, so you can have the ability to make a more educated choice before you hit "The Street." If this is your first time "Welcome to Wall Street." Make sure you click to subscribe and check out our other content. Always Great things happening here. Where to find more of Todd Ault: Facebook:   / miltontoddaultiii   Instagram:   / toddault   TikTok: https://vm.tiktok.com/ZMJA4cLnE/ Website: http://toddault.com Twitter:   / toddaultiii   SnapChat:   / toddault   LinkedIn:   / miltontoddault   Website: https://alzamend.com/ "Ault Global, Inc. and its Wall Street Words content is for informational purposes and is not intended to substitute for the advice of a licensed or certified attorney, accountant, financial advisor, or other certified financial professionals. Ault Global, Inc. and its Wall Street Words does not provide any investment, financial, accounting or other professional advice." #wallstreet #safehaven #investingportfolio #stocktrading