Geopolitical Risks May Cause Flight to Safe Haven Investments

Increased tensions on the Korean peninsula and in Syria can adversely impact the already weakening stock market really.

In our view, an early warning sign is the sudden outperformance of safe haven investments, such as Treasury bonds and gold.

The chart below shows that the Spartan Long-Term Bond Fund (FLBIX) started moving higher already by breaking out from a six-month trading range:

flbix-041117

The Fidelity Select Gold Fund (FSAGX) was the best-performing Fidelity fund today with a 2.63% gain, and may be on the verge of breaking the long-term downtrend line:

fsagx-041117

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