“Safety” is still a feature many Americans seek out when looking for investment ideas. Yes, the U.S. economy remains strong, with second-quarter gross domestic product (GDP) topping expectations at 2.4% in the latest report. And of course, while inflation is still higher than the Federal Reserve's goal of 2%, it's cooled significantly, and is now up just 3% year-over-year, according to the Bureau of Labor Statistics.
Despite this good news, cause for investor caution remains, as interest rates are at a 22-year high. The benchmark rate now stands between 5.25% and 5.5% after the most recent hike by the Federal Reserve. In this environment, there is still reason to seek out “safe haven” assets to protect against future volatility.
