Analysis & Insights From The World Of Finance & Business

In a normal financial crisis, we would expect investors to take their money out of equities and put it into traditional safe havens, such as gold and treasury bonds. However, at the onset of the pandemic, regular safe havens fell in price as investors have tried to liquidate assets into cash because of impending margin calls. Many borrow money to invest, and if the value of their investment slips below what they have borrowed, they get a margin call and have to stump up the cash immediately, which has put added pressure on the dollar.