Gold and Bitcoin are Safe-haven? Evidence from Developed and Emerging Market Indices During the COVID-19 Bear Market

2021 ◽  
pp. 55-86
Author(s):  
Hana Belhadj ◽  
Salah Ben Hamad
Keyword(s):  
Emerging Market ◽  
Safe Haven ◽  
Bear Market

Conditional stock liquidity premium: is Warsaw stock exchange different?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Szymon Stereńczak
Keyword(s):  
Emerging Markets ◽  
Stock Returns ◽  
Stock Exchange ◽  
Emerging Market ◽  
Market Liquidity ◽  
Investment Horizon ◽  
Liquidity Premium ◽  
Stock Liquidity ◽  
Content Type ◽  
Bear Market

Purpose This paper aims to empirically indicate the factors influencing stock liquidity premium (i.e. the relationship between liquidity and stock returns) in one of the leading European emerging markets, namely, the Polish one. Design/methodology/approach Various firms’ characteristics and market states are analysed as potentially affecting liquidity premiums in the Polish stock market. Stock returns are regressed on liquidity measures and panel models are used. Liquidity premium has been estimated in various subsamples. Findings The findings vividly contradict the common sense that liquidity premium raises during the periods of stress. Liquidity premium does not increase during bear markets, as investors lengthen the investment horizon when market liquidity decreases. Liquidity premium varies with the firm’s size, book-to-market value and stock risk, but these patterns seem to vanish during a bear market. Originality/value This is one of the first empirical papers considering conditional stock liquidity premium in an emerging market. Using a unique methodological design it is presented that liquidity premium in emerging markets behaves differently than in developed markets.

Commodities rout will fuel EM concerns and volatility

2015 ◽  
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Emerging Market ◽  
Commodity Prices ◽  
Content Type ◽  
Bear Market ◽  
Political Crises ◽  
Downward Pressure ◽  
Advanced Economies ◽  
Country Specific

Significance This drop has taken oil into its second bear market in the space of just over a year amid a broader rout in the prices of commodities, notably copper and gold. The commodity sell-off is fuelled by mounting concerns over the economy and financial markets of China, the world's top crude importer and its largest energy user. The sell-off is exacerbated by fears over the fallout from a US interest rates rise, which could come as early as September. Country-specific risks are weighing on emerging market (EM) assets, notably the currencies of large commodity exporters such as Brazil and Russia. Impacts The sharp fall in commodity prices will exert further downward pressure on inflation in both emerging and advanced economies. Re-emerging disinflationary trends will bode ill for the ECB efforts to boost inflation in the euro-area. The commodity sell-off will exacerbate economic and political crises in Brazil and Russia. The EM currencies fall is forcing many central banks to signal an end to monetary easing or to tighten policy.

scholarly journals ANALISIS PERANAN EMAS DAN OBLIGASI PEMERINTAH SEBAGAI SAFE HAVEN PERIODE 2014—2018

2020 ◽  
Vol 16 (2) ◽  
pp. 212-236
Author(s):  
Evamelia Evamelia ◽  
Yunia Panjaitan
Keyword(s):  
Quantile Regression ◽  
Capital Market ◽  
Regression Method ◽  
Government Policies ◽  
Safe Haven ◽  
Government Bonds ◽  
Bear Market ◽  
Political Conditions ◽  
Quantile Regression Method

The purpose of this research to identify the role of gold and government bonds role as safe haven in Indonesian capital market during 2014-2018. In this study we analyze the influence of stock on gold and government return on bear market conditions, using quantile regression. The quantile regression method was used to analyze the data.  The result if this study indicated that gold and government bonds cannot play a safe haven consistently throughout the study period due to political conditions, government policies and psychological factors (doubt) from investors. For the following research, researchers should examine more deeply about the factors that influence the loss of the role of safe haven in both investment instruments.

The risks surrounding ECB stimulus withdrawal are high

2018 ◽  
Keyword(s):  
Euro Area ◽  
Emerging Market ◽  
Content Type ◽  
Core Inflation ◽  
Bear Market ◽  
The Past ◽  
Downward Pressure ◽  
Export Competitiveness ◽  
Equity Funds ◽  
Equity Index

Subject Monetary divergence Significance After reaching multi-year highs in the second half of 2017, euro-area manufacturing and services surveys are now signposting slower growth. Meanwhile, euro strength is dampening inflation pressures. Thus the ECB will be cautious in its plans to ‘normalise’ its ultra-loose monetary policy. Impacts The euro has gained 15% against the dollar over the past twelve months; growing divergence with US policy will fuel further strength. Further euro strength is likely to put more downward pressure on euro-area core inflation and could damage export competitiveness. Markets are likely to remain volatile; the S&P 500 equity index is experiencing its second-most volatile year outside a bear market. Investors’ appetite for ‘risk assets’ will remain strong; 65 billion dollars has gone into emerging market bond and equity funds in 2018.

scholarly journals Safe haven or risky hazard? Bitcoin during the Covid-19 bear market

2020 ◽  
Vol 35 ◽  
pp. 101607 ◽  
Author(s):  
Thomas Conlon ◽  
Richard McGee
Keyword(s):  
Safe Haven ◽  
Bear Market

Safe-haven assets for U.S. equities during the 2020 COVID-19 bear market

2021 ◽  
Vol 10 (3) ◽  
pp. 331-335
Author(s):  
Chung Baek ◽  
Thomas Jackman
Keyword(s):  
Stock Market ◽  
Safe Haven ◽  
Treasury Bonds ◽  
Bear Market

The recent stock market downturn is differentiated from the previous ones as it is due to an economic, rather than a financial occurrence (the COVID-19 Pandemic). The purpose of our study is to examine gold, bitcoin, and U.S. Treasury bonds as a safe haven during the COVID-19 bear market. Unlike many studies that support gold as a traditional safe haven for stocks, our study finds that bitcoin and Treasury bonds perform better as a safe haven than gold during the recent COVID-19 bear market. 

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