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Can Safe Havens Be Risky?.

  • Written by Syndicated Publisher 60 Comments60 Comments Comments
    September 10, 2011

    Safe havens have done really well of late. Owners of the Swiss Franc, TLT and Gold have seen their values move sharply higher.

    When building a portfolio, are there times that investors should look at these safe havens as riskier than normal?

    Last week I suggested that the Swiss Franc was facing a resistance line (see post here) that had been in place for 30-years.


    What has happened since? Yesterday the Franc fell 7%, one of the largest single day declines in 30 years for the Franc.

    TLT has done well of late as a safe haven play. TLT now finds itself up against its 23% Fibonacci resistance level and at the top of a bearish rising wedge.



    Are their times safe havens are risky? The Franc proved it last week, is TLT now going to prove it again?

    Addendum: If safe havens can be risky, another safe haven looks to be risky in this quiz (see quizhere).


    (c) Kimble Charting Solutions


    From  Can Safe Havens Be Risky?.

    Images: Flickr (licence attribution)

    About The Author

    My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.

    My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.

    Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.

    Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.