What are the stable configuration products for anti-inflation?
Hong Kong has launched iBond. What are some truly anti-trust elections this year?
We are looking forward to another half year in 2021, and the second half of last year hit a new high due to unprecedented dewatering market heat. whileMarket storm surges since the year of the bullThe US bond rate began to rise steadily at the end of January, the stock market did not move, and the money that had been lying dormant in the Central Bank had not yet reached the bottom of its head, and there was a sudden rush of wind.A friend who bought at a high point is far from over.
On the other hand, the little friends received a call from relatives who lived far away from home, “The news is about mining machines, why don't I have mine excavators?” A coin ring that rolls up and down like a roller coaster finally makes people tired of love. After all, all the mines in the air have lost their strength!
The boom brings price increases, and it constantly encroaches on the purchasing power of our wealth. The Hong Kong government recently launched iBond bonds, and a small group of partners began to wrestle. In addition, in an environment of low interest rates and high volatility, what is the most suitable anti-volatility choice for the current market?
How do you look at the macro trend from the top down?
Overall, this year is still a recession and volatility. Mr. Zhu Huiping, Managing Director of Gao Teng International Fixed Income, said,”We expect the global economy to continue to recover at different speeds, with China and other developed countries leading the way, while emerging market countries such as India and Brazil continue to struggle with the spread of mutant strains. Recent attention needs to be paid to the prevalence and rate of uptake of vaccines in developing countries.”
In addition to the economic recession, we expect market volatility to persist against a backdrop of gradual monetary policy normalisation, both short-term and long-term, and the effects on interest rates and markets generally remain to be observed.
THE CURRENT MARKET SENTIMENT AND SENTIMENT VOLATILITY CAN BE SEEN THROUGH BITCOIN'S 30% SINGLE-DAY VOLATILITY. At the same time, the market may remain volatile compared with political risks in many areas, in addition to China's re-issuance of debt and deleveraging to avoid property and citywide systemic risks.
Win Big with Balance and Discipline in Volatile Markets
On the one hand, the long-term significance of provisioning bonds in a low interest rate environment remains。We believe that interest rates will remain relatively low due to structural issues (including ageing, the poverty gap, rising debt levels and technological advances). After the pandemic, these issues have become clearer. Looking further ahead, we expect interest rates to continue their downward trend of the last 30 to 40 years. Recent market volatility and repeated discussions such as forecast spreads, future monetary expansiveness, excessive fiscal support have not changed our judgment on future low interest rates.
Therefore, we believe that fixed income asset allocation is quite important. And on the choice of high-yield and investment-grade bonds, Macro's strong economic readings will be conducive to the resumption of trading.
High-yield bonds tend to perform better in this environment.But when you look at a specific combination strategy, a balanced combination (Both investment grade and high yield bonds included)More conducive to configurationMainly: 1) US bonds have returned to Q4 2019 levels, and despite the economic downturn and upside, high benchmark interest rates will also support the performance of investment grade bonds; 2) Investment grade bond holdings remain advantageous in the current low interest rate environment and the onset of a black swan event. Balanced funds are more suitable for flexible switching between different strategies.
On the other hand,Based on market fluctuations and near-zero deposit rates, investors are generally advised to have a stable investment grade, such as 5-6% annual revaluation stocks, mutual funds, etc. High-quality growth stocks have also gained some value after recent stock declines.
Global central banks are expected to remain patient with the odds this year. It is also important to maintain investment discipline and invest only in assets with value. In the current market volatility, fair valuation is the core to avoid overbought and undersold.Diversified and balanced investment strategies and prudent value-seeking investment strategies are especially important in highly volatile markets。 This strategy can be pulled back controllably when a credit swan event occurs, and can be optionally low-key when the market falls.
The market is expected to focus on the Fed's gradual tapering of quantitative easing at the end of the year. From past periods of monetary tightening, as long as economic fundamentals are firm, quantitative easing or monetary policy tightening does not materially affect financial markets. While the liquidity squeeze will have a negative impact on financial markets, it is not expected to happen in the next few years, so stay invested.
The investment has never been profitable, butIt's a journey of small and large scale。All kinds of information in the market affect our mood. Stick to simple, common, time-tested rules, sound logic and fundamental research, ignoring some short-term factors or fluctuations, or perhaps the best course of action!
Does it not make sense to set foot in real asset allocation with the power of logic and the disposition of the local authorities ~
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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