Are safe haven assets really safe during the 2008 global financial crisis and COVID-19 pandemic?

Md. Bokhtiar Hasan, M. Kabir Hassan, Md. Mamunur Rashid and Yasser Alhenawi

Global Finance Journal, 2021, vol. 50, issue C

Abstract: This study evaluates the safe-haven role of twelve assets against the US stock market during the 2008 global financial crisis (GFC) and the COVID-19 pandemic. Our results show that silver and the Islamic stock index were safe havens during the 2008 GFC, and the Islamic stock index and Tether have been safe havens during COVID-19. We observe that the Islamic stock index and Tether have emerged as strong new safe havens. However, our supplementary analysis reveals that gold and Bitcoin still exhibit safe-haven behavior during severe market downturns. Overall, our findings suggest that safe-haven assets may vary over time.

Keywords: COVID-19; 2008 GFC; Hedge; Safe haven; US stock market (search for similar items in EconPapers)
JEL-codes: C58 G01 G11 G14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:50:y:2021:i:c:s1044028321000661

DOI: 10.1016/j.gfj.2021.100668

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