ETFs that invest in U.S. Treasuries, gold and the Swiss franc, looked upon as safe havens, have started to look risky due to risk aversion on financial markets, ETF Trends reports. It is feared that these perceived safe avenues may lose value after the economic recovery and could be overbought.
Though gold corrected after breaching $1,900 an ounce, it again crossed $1,800 on August 26 after the central bank decided to consider additional steps to support the economy at its September meeting. The franc has also retreated as the Swiss National Bank takes measures to rein in the currency’s rise. U.S. Treasuries have found support from the Federal Reserve and demand overseas, but that could change too.
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