Investing in assets that are non-correlated can help spread the risk in the overall portfolio. Safe-haven assets, such as the US Dollar, Swiss Franc, gold and Bitcoin/USD, have surged in this period of uncertainty. The surging US stock market, low interest rate environment around the world and overall economic gloom, helped the US Dollar climb higher early during the coronavirus outbreak. Subsequently however, the US Dollar appeared to lose its safe-haven status to the Swiss Franc, amidst US-China tensions and gradual recovery in economic activities worldwide.
Gold prices are expected to benefit from the uncertain global economic outlook and a weaker US Dollar. The yellow metal price breached $2,000 an ounce recently and this momentum might continue all the way to $2,500 by the year end. Another safe-haven asset to consider is Bitcoin (BTC), which has had a stellar year in 2020. The largest cryptocurrency is now trading close to $12,000, as of August 11, 2020.