Against the backdrop of global economic turmoil, the phenomenon of domestic asset shortage is becoming increasingly prominent, leaving investors in a dilemma with nowhere to invest their funds. The 4E platform, with its one-stop financial product trading services, offers investors diversified asset allocation and risk management strategies, helping them achieve better investment returns in times of asset scarcity.
Analysis of Asset Scarcity:
“Asset scarcity” refers to the increasing scarcity of low-risk, high-yield investment products in the market, while the money supply continues to increase, leading to a phenomenon where funds chase after assets. This phenomenon is closely related to factors such as China’s economy transitioning from high growth to a new normal, declining investment and financing demand, and loose monetary policy. In the context of asset scarcity, not only are high-yield, low-risk assets hard to come by, but even the returns on low-risk financial products continue to decline.
Challenges and Opportunities in Asset Allocation:
Faced with asset scarcity, investors need to reassess and adjust their asset allocation strategies. Traditional investment channels such as the real estate market, stock market, and fund management have seen changes in both risk and return expectations due to market fluctuations and policy impacts. Therefore, seeking diversified asset allocation and utilizing the incomplete correlation between different markets has become an effective strategy to tackle asset scarcity.
One-Stop Service of the 4E Platform:
As a financial asset trading platform, the 4E platform provides global users with a variety of financial products including cryptocurrencies, forex, stocks, commodities, and indices. These products cover different markets and risk levels, offering investors a wide range of choices.
1. Cryptocurrencies: as an emerging asset class, the cryptocurrency market has high volatility and potential high returns, suitable for investors with a higher risk tolerance.
2. Forex market: forex trading provides opportunities to trade global currency pairs, allowing investors to profit from the market’s fluctuations, with its liquidity and long trading hours being advantages.
3. Stock investments: despite the stock market’s downturn, high-quality stocks remain an important part of asset allocation in the long run, especially in the US stock market, which provides investors with long-term investment opportunities due to its maturity and diversity.
4. Commodities: the commodity market is closely related to the macroeconomic cycle, allowing investors to hedge against inflation risks and earn periodic returns through commodity investments.
5. Index investments: index funds offer an opportunity to track the overall market performance, suitable for investors seeking average market returns.
Utilizing the Incomplete Correlation Between Different Markets as a New Direction:
Against the backdrop of the macroeconomic transition from high growth, China is gradually entering an era of asset scarcity. The central bank’s continuous interest rate cuts to alleviate debt pressure have resulted in major asset classes yielding less than 3%. Real estate and stock investments are facing losses, while deposit and government bond yields continue to decline. In this scenario, the returns on insurance, funds, and bank wealth management products are also decreasing. Meanwhile, cryptocurrencies, US stocks, indices, and bulk commodities are continuously hitting new highs. The difference in domestic and foreign returns is driving funds to seek new outlets.
Therefore, seeking diversified asset allocation and utilizing the incomplete correlation between different markets has become an effective strategy to tackle asset scarcity. The 4E platform, as a financial asset trading platform, provides global users with a variety of financial products including cryptocurrencies, forex, stocks, commodities, and indices. These products cover different markets and risk levels, offering investors a wide range of choices.
By effectively utilizing the resources of the 4E platform, investors can maximize asset returns while maintaining their risk exposure unchanged, thus finding new opportunities in the challenge of asset scarcity.
