What the Death of 'Safe Havens' Means for the Market

A travesty is playing out in the investing world right now... [Chaikin PowerFeed]( What the Death of 'Safe Havens' Means for the Market By Karina Kovalcik, analyst, Chaikin Analytics A travesty is playing out in the investing world right now... "Safe havens" are disappearing. U.S. Treasury bonds and gold are the most notable safe havens. For decades, investors could park their money in these assets... And they could often make modest gains with relatively low risk. This blueprint worked perfectly for retirees... That's because at that stage in life, folks are more concerned with protecting and living off their wealth than growing it. But in our current market environment, these low-risk places to park money aren't the same... And even worse, folks close to retirement don't have many clear alternatives. Let me explain... Recommended Links: [Serious Warning for All Subscribers]( The man who predicted the 2020 Crash to the VERY WEEK is now sharing the EXACT DATE he believes stocks will soon plummet. [Claim a free copy of his new report naming which three stocks could see the biggest moves](. [Buy this $8 'driverless car' stock immediately]( A man who has nailed two different 10-baggers says this tiny stock could become the most lucrative he'll ever share. It's a new kind of company with almost no revenue, no products, and no employees that could "10x" your money... even if stocks fall in 2022. [Click here to learn more](. In short, Treasury bonds and gold aren't what they used to be. Bonds have traditionally served as a good place for people on fixed incomes to park their money. Folks could sleep easy at night... Their money would be safe in the hands of the U.S. government, and it would earn some interest along the way. But now, with inflation around 6%, any return less than that is a relative loss. And Treasury bonds haven't gotten close to those types of returns recently... For example, the five-year U.S. Treasury note yields about 1.5% today. However, when you factor in inflation, the real rate of return on this note – the difference between its yield and the inflation rate – has been negative for most of the past several years... [Chaikin PowerFeed] In other words, inflation is eating up any returns in Treasury bonds today. (My colleague Pete Carmasino discussed this point in more detail [in the December 23 PowerFeed]( To make matters worse, the Federal Reserve announced plans to consider raising interest rates starting in March. Bond prices and yields are inversely correlated... When rates rise, prices drop. So inflation and rising rates are two strikes against Treasury bonds as a safe haven. Next, let's consider what's happening with another historical safe haven – gold... When inflation rises, investors often turn to the precious metal. It's considered a steady place to store wealth in times of turbulence. Despite that, studies published back in 2012 – a decade ago – call into question whether gold ever served as a good hedge against inflation. And its recent performance seems to support those doubts... The precious metal's value dropped 3.5% as inflation soared in 2021. Take a look... [Chaikin PowerFeed] With inflation hitting 40-year highs, you would think money would be running toward so-called safe havens like Treasury bonds and gold... But at least so far, it's not. The only obvious assets that held up in 2021 were real estate investment trusts and stocks... And they're both a far cry from low-risk investments. Folks, to me, it's clear... No low-risk, modest-return vehicles remain. And unfortunately, the lack of safe havens could cause a lot of retirement problems in the near future. That's why now, more than ever, you need a focused investment strategy... Investors will flee low- and negative-yield assets in the months ahead. And as long as the current market conditions persist, they'll be looking for places to park their money. We're in for another turbulent year in stocks... But it's one with considerable upside potential. After all, with the death of safe havens, folks don't have anywhere else to turn. Good investing, Karina Kovalcik Market View Major Indexes and Notable Sectors % Hld: Bullish Neutral Bearish Dow 30 -0.05% 9 20 1 S&P 500 -0.41% 122 314 61 Nasdaq -1.08% 22 66 13 Small Caps -1.18% 386 991 478 Bonds -0.72% Energy +1.36% 10 11 0 — According to the Chaikin Power Bar, Large Cap stocks are more Bullish than Small Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] DISCA +16.87% [rating] VIAC +8.16% [rating] LUMN +5.68% [rating] CTRA +5.33% [rating] HST +4.96% Losers [rating] DHI -6.17% [rating] ETSY -5.99% [rating] XLNX -5.38% [rating] TPR -5.12% [rating] ABMD -5.10% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises [rating] AYI Acuity Brands, Inc. Q1 $2.85 Beat by $0.44 * * * * Sector Tracker Sector movement over the last 5 days Energy +10.50% Financial +5.38% Industrials +0.64% Staples +0.40% Materials -1.45% Communication -1.60% Utilities -1.63% Discretionary -2.43% Information Technology -4.61% Health Care -4.64% Real Estate -4.90% * * * * Industry Focus Pharmaceuticals Services 5 30 11 Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -20.74%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] PRGO Perrigo Company plc [rating] ACRS Aclaris Therapeutics [rating] AXSM Axsome Therapeutics, * * * * Chaikin Analytics LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Chaikin Analytics does not recommend the purchase of any stock or advise on the suitability of any trade. The information presented is generic in nature and is not to be construed as an endorsement, recommendation, advice or any offer or solicitation to buy or sell securities or any kind, but solely as information requiring further research as to suitability, accuracy and appropriateness. Users bear sole responsibility for their own stock research and decisions. Read the full disclaimer at [(. 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