@serxpinar

In a trade war, capital typically flows to safe-haven assets like gold, U.S. Treasuries, and the Japanese yen. Gold thrives amid uncertainty, offering protection against inflation and currency devaluation, though its effectiveness varies by region. U.S. Treasuries, especially short-term bonds and TIPS, provide stability and guaranteed yields, appealing to risk-averse investors as tariffs disrupt markets. The yen gains demand due to Japan’s low tariff exposure and stable economy. The U.S. dollar often strengthens as a global hedge, despite trade tensions, due to its reserve currency status. Defensive stocks, like utilities or U.S.-focused firms, also attract funds for their resilience. Diversification across these assets mitigates volatility, balancing liquidity and growth potential.

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