"Flight to Quality": Financial Markets' Strategy in Times of Danger

Financial markets are witnessing, according to Reuters, a practical application of the "flight to quality" strategy, directly influenced by IMF warnings about the Middle East. This strategy manifested in withdrawing trillions of dollars from high-risk equities and directing them toward gold, which is recording astronomical figures, to hedge against any oil disruption via the Strait of Hormuz. On the tech side, EV companies are capturing the lion's share of long-term investments in search of sustainable growth havens.