Against the backdrop of global economic turmoil, the phenomenon of domestic asset shortage is becoming increasingly prominent, leaving investors facing the dilemma of having nowhere to invest their funds. The 4E platform, with its one-stop financial product trading services, offers investors diverse asset allocation and risk management strategies, helping them achieve better investment returns in this era of asset scarcity.
Analyzing the phenomenon of asset scarcity, it refers to the increasing scarcity of low-risk, high-yield investment products in the market, while the money supply continues to increase, leading to the phenomenon of funds chasing assets. This phenomenon is closely related to factors such as China’s economy bidding farewell to high growth and entering a new normal, a decrease in investment demand, and loose monetary policies. In the context of asset scarcity, not only are high-yield, low-risk assets hard to find, but even the returns on low-risk financial products continue to decline.
Facing asset scarcity, investors need to reexamine and adjust their asset allocation strategies. Traditional investment channels such as the real estate market, stock market, and fund management have seen changes in risk and return expectations due to market fluctuations and policy influences. Therefore, seeking diversified asset allocation and utilizing the incomplete correlation between different markets has become an effective strategy to deal with 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.
Cryptocurrencies, as an emerging asset class, have high volatility and potential high returns, making them suitable for investors with a higher risk tolerance. The forex market provides trading opportunities for global currency pairs, allowing investors to profit from market fluctuations, with its liquidity and long trading hours being advantages. Despite the current downturn in the stock market, quality stocks remain an important part of asset allocation in the long run, especially in the mature and diverse US stock market, providing investors with long-term investment opportunities. Commodity markets are closely related to the macroeconomic cycle, allowing investors to hedge against inflation risks and gain cyclical returns through commodity investments. Index funds offer the opportunity to track overall market performance, suitable for investors seeking steady returns matching the market average.
In the context of the macroeconomic shift away from high growth, China is gradually entering an era of asset scarcity. The continuous interest rate cuts by the central bank to ease debt pressure have led to the rare occurrence of major asset class yields falling below 3%. Real estate and stock investments face losses, while deposit and bond yields continue to decline. In this situation, the returns on insurance, funds, and bank wealth management are also continuously decreasing. Meanwhile, cryptocurrencies, US stocks, indices, and bulk commodities are constantly breaking 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 deal with 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 utilizing the resources of the 4E platform effectively, investors can maximize asset returns while maintaining their risk exposure, thereby finding new opportunities in the challenges of asset scarcity.