The 2008 Global Financial Crisis and COVID-19 Pandemic: How Safe are the Safe Haven Assets?

42 Pages Posted: 3 May 2020 Last revised: 6 Feb 2022

See all articles by Muhammad A. Cheema

Muhammad A. Cheema

University of Otago New Zealand

Robert W. Faff

University of Queensland; Bond University

Kenneth Szulczyk

Al Akhawayn University

Multiple version iconThere are 2 versions of this paper

Date Written: January 30, 2022

Abstract

We compare the performance of safe-haven assets during the Global Financial Crisis (GFC) and COVID-19 pandemic. First, regarding the GFC, we find, intermediate (weak) safe haven evidence for US dollar, Swiss franc and T-bonds (Gold, Silver and T-bills). Second, with regard to COVID, we find gold is very risky in some settings, while silver has become extremely risky. Collectively, our findings suggest that the character of safe-haven assets has changed between the crises. Therefore, investors should exercise extreme care when investing in potential safe-haven assets during times of market stress.

Keywords: COVID-19; 2008 GFC; safe haven assets

JEL Classification: D8, G01, G10, G11, G14, G14

Suggested Citation

Cheema, Muhammad A. and Faff, Robert W. and Szulczyk, Kenneth, The 2008 Global Financial Crisis and COVID-19 Pandemic: How Safe are the Safe Haven Assets? (January 30, 2022). Available at SSRN: https://ssrn.com/abstract=3590015 or http://dx.doi.org/10.2139/ssrn.3590015

Muhammad A. Cheema (Contact Author)

University of Otago New Zealand ( email )

Dunedin, 9016
New Zealand

Robert W. Faff

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Bond University ( email )

Gold Coast, QLD 4229
Australia

Kenneth Szulczyk

Al Akhawayn University ( email )

PO Box 104 Hassan II Avenue
Ifrane, Meknès-Tafilalet Region 53000
Morocco

HOME PAGE: http://www.aui.ma

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,063
Abstract Views
3,946
rank
12,356
PlumX Metrics