Investors seek safe havens from market instability

Investors are currently looking for safe places to put their money due to uncertainties surrounding Donald Trump's policies. Recent data from Bank of America shows that fund managers have significantly reduced their investments in U.S. stocks. Many are now worried about a potential downturn in the global economy. Despite the bleak outlook, Bank of America suggests there could still be a rebound as managers who have sold stocks might eventually need to reinvest. However, some are skeptical about how long this might take, as Trump's decisions create a lot of unpredictability. Traditional safe investments, like gold and bonds, are struggling. Gold prices are at record highs, making it less attractive for some investors. Bond prices could also be negatively affected by rising inflation linked to Trump's tariffs. In response to this market turmoil, three alternative investment options stand out. The first is Berkshire Hathaway, led by Warren Buffett. The company has a strong financial position and has performed well, with its stock tripling over the last five years. This makes it a low-risk option for investors. The second option is investing in European stocks. They are cheaper than U.S. stocks and could benefit from increased spending in Germany, Europe's largest economy. Goldman Sachs predicts that European markets could rise further this year. Low-cost exchange-traded funds, like those from Vanguard and RBC iShares, target these markets. Lastly, Canadian electrical utilities, such as Canadian Utilities, Fortis, and Hydro One, offer reliable dividends and decent growth potential. These stocks are somewhat shielded from consumer spending slowdowns linked to tariff disputes. While these havens might not yield extraordinary returns, they could help investors navigate the current market challenges created by Trump's policies.