31st March 2026
M&G: What is a safe haven now?
Heightened geopolitical uncertainty and a rising risk of fiscal dominance are drawing greater market scrutiny, given their potential inflationary implications. Add in AI and digital assets’ radical economic potential and it’s hard to escape the sense that we’re on the cusp of a genuine paradigm shift.
In this fast-moving landscape, the idea of what constitutes “safety” has become far more fluid. Familiar relationships between “risk on” and “risk off” assets are evolving. Even once unquestioned options, such as government bonds and the US dollar, have shown signs of recent strain. Such sentiment is driving investors to re-evaluate the traditional allocation strategies such as the 60/40 blend and seek portfolio constructions that can weather structural volatility and shifting macro drivers.
Ultimately, our view is that “safety” has become a moving target – and preparing for changing tides is wiser than anchoring to yesterday’s certainties. As the world continues to evolve, building a substantially diversified mix of safe?haven assets and orthogonal strategies is becoming increasingly essential.
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