What has happened since this chart was posted? Yesterday the Swiss Franc suffered one of its largest single day declines in 30 years. Can safe havens investments be risky? Unless you consider a 7% single day decline a small loss, yes they can!
Below is an update of the Swiss Franc ETF (FXF) and TLT. Another safe haven play looking risky?
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FXF proved that owning a safe haven play at the wrong time can be risky!!! TLT is now facing its 23% Fib ratio and a resistance line that has seen a few key reversals over the past few years!
I remain of the opinion that conservative investors should harvest up against resistance and aggressive investors should “attempt to score on defense” at resistance with an upside stop if resistance doesn’t hold.
Is another safe haven play looking risky besides TLT? If the quiz yesterday is accurate, another safe haven is at a risky price point! (see quiz here)