The three main assets, how do smart people choose?
In the current volatile environment of the global economy, investors are faced with a crucial choice: whether to allocate capital to **, the US dollar or the renminbi. Each of these three assets has its own characteristics, and for investors, which one to choose depends on their personal financial goals, risk tolerance, and prediction of future market movements.
** — An eternal natural currency, the easiest asset to realize
*A popular investment and hedging tool since ancient times. In times of economic instability, ** often exhibits a good asset preservation function. Often the opposite of the currency market, it can be used as an asset in a hedge portfolio. Because it is **usually** to reflect the depreciation of the currency, it can also be used as a hedge against inflation. As a result, it is also resilient to inflation and economic turmoil.
*The global market and physical attributes make it ideal for countering geopolitical risks. However, physical goods do not generate cash flow and their return on investment is entirely dependent on changes, which also means that there is an opportunity cost to holding physical goods.
However, the electronic spot ** just makes up for the shortcomings of the physical **. Spot ** has more ample trading opportunities, and it tracks the trend of the world market. Using T+0 mode, it can be traded at any time 24 hours. Relying on the online financial management platform is more flexible, and at the same time, it has a two-way trading system of gold and long and short, so there are more opportunities for operation and more effective use of funds to make profits.
The U.S. dollar is the instrument for harvesting the world, and is now the dominant currency
As the world's most important reserve currency and medium of exchange, the value of the US dollar is not only affected by the state of the US economy, but also closely related to the global economic environment. The U.S. dollar is widely used internationally**, in the foreign exchange market, and in the financial system. Holding US dollars allows you to conduct various transactions at any time, which is convenient and fast.
In times of global economic turmoil, the U.S. dollar is often widely held as a safe asset. However, with the US economy slowing and debt rising, the long-term outlook for the US dollar could be affected. Due to the Fed's monetary policy, such as quantitative easing or interest rate hikes, there is also a risk of depreciation of the US dollar.
RMB - a way of win-win cooperation, a representative of a strong rise
The renminbi is the second largest currency in the world, and the rise of China's economy has led to the growing international influence of the renminbi. As a country with a large consumer market and a strong economy, China is making an increasing contribution to the global economy. The renminbi is regarded as a currency that is gradually moving towards internationalization, and its stability and reliability have been increasingly recognized, and it is more and more widely used in international ** and investment.
Investing in RMB assets can diversify the risks associated with geopolitical and monetary policy differences. The exchange rate of the renminbi has a certain degree of stability due to the control of **. Of course, at any time when the domestic economy is in a downturn and inflation intensifies, banks will cut interest rates and bid farewell to the "three eras", and deposits will depreciate more and more.
In conclusion, for smart investors, choosing **, the US dollar or the Chinese yuan is not an either/or issue. True wisdom lies in diversifying your asset allocation based on your investment goals, time horizon, and exposure to future market changes.
In the context of the continuous change of the global economic environment, you can use spot** as one of the portfolios, which is a safe-haven asset, and has high liquidity and trading convenience, which can obtain excess investment returns. If you are optimistic about China's economic development and global influence, the RMB is also a potential investment tool.
No matter which asset you choose, investors need to be aware of market volatility and risk and diversify their portfolios in order to find a balance among different assets and achieve good returns.