Safe Haven Stocks to Trade in Volatile Markets

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Safe Haven Stocks to Trade in Volatile Markets
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Throughout periods of market disorder, stock traders look to safe haven stocks to weather the storm. Take a look at key concepts to help traders take advantage of safe haven stocks

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Most often, trading safe haven stocks is used as a defensive tool to weather a fading economy as evenSlow economic conditions allow safe haven stocks to outperform the rest of the stock market however, this does not translate into profits. There are several factors to consider when identifying and trading safe haven stocks:Trader’s should consider the beta of a stock prior to investment. The beta refers to the correlation between the stock and the market.

No one factor is dominant over another. Traders need to do thorough research and analysis prior to selecting safe haven stocks. All factors above should be scrutinized to derive the most suitable shares for the risk appetite of the portfolio.

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