April has been a rollercoaster for global markets, and investors are gripping the safety bar tighter than ever.
With Wall Street rattled by President Trump’s surprise “Liberation Day” budget bombshell and fears of trade wars sending the U.S. dollar tumbling, capital is now flowing fast, but not to where you might expect.
Wall Street Sell-Off Sends Ripples Across the Globe
The S&P 500 is now staring down its third consecutive monthly loss, and U.S. Treasuries, the go-to haven in times of uncertainty, are suddenly looking fragile.
In response, the dollar hit a three-year low, while European equities, which briefly looked like a safe escape, got whacked by a surging euro that’s now up 10% in just two months.
That’s not great for exports or for confidence.
So where’s the money going?
Emerging Markets, Gold Mining, and “Tariff-Proof” Assets Take Center Stage
It turns out that traditional “volatile” markets are now looking less volatile. Investors managing global portfolios are warming up to Brazilian bonds, Latin American currencies, and gold mining stocks in Australia and Canada.
Pictet Asset Management’s Shaniel Ramjee put it plainly: the volatility gap between emerging and developed markets is narrowing. He’s already shifted money into Brazilian local currency debt and sees more upside in non-U.S., non-European plays.
Private credit, securitised debt, and niche fixed-income assets are also seeing renewed interest. According to Principal Asset Management’s Mike Goosay, these pockets offer more attractive risk-adjusted returns than battered U.S. assets.
Gold Hits Record High, Safe Havens Show Cracks
Even the usual flight-to-safety options are wobbling. Gold hit a record $3,500 an ounce.
Japan’s yen gained 4% this month. But yields on German government bonds have plunged, and there just isn’t enough high-grade non-U.S. debt to absorb the flood of exiting capital.
Morgan Stanley warns that the euro’s continued rise, driven by this imbalance, could worsen Europe’s already shaky growth outlook. Meanwhile, Swiss franc and Japanese yen trades are becoming what one strategist called “widow-making.”
So… Where Do We Go From Here?
That’s the billion-dollar question. Some believe the market’s mood could flip again if U.S. policy shifts in the coming months.
Others think this is the new normal: a world where investors must look beyond traditional safe havens and build portfolios around less obvious, tariff-proof assets.
For now, if you’re an investor scanning the horizon, the message is clear: Wall Street may no longer be the world’s default anchor.
Diversification isn’t just good practice in 2025. It’s a survival strategy.
