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flight to safety
What does flight to safety mean?
A flight to safety is a broad move by investors out of risky assets and into perceived safe havens during crises or turmoil, prioritizing capital preservation over returns. Bonds, gold, and the dollar typically benefit.
"The crash triggered a flight to safety into Treasuries and gold."
Origin
Descriptive finance term; capital 'flees' to safety.
Frequently asked questions
What is a flight to safety?
It's a broad move by investors out of risky assets and into perceived safe havens during crises, prioritizing preserving capital over chasing returns.
Which assets benefit from a flight to safety?
Government bonds (like US Treasuries), gold, and the US dollar typically rally as investors seek safety.
How is it different from 'risk off'?
They're closely related; 'risk off' describes the mood, while a flight to safety describes the actual capital rushing into safe havens during turmoil.
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