16/7/2018-8

Sino-US trade war and investment

If you have noticed the “Xiangjiang First Health Pen" Lin Xingzhi and Lian Yizhen’s recent analysis of the Sino-US trade war, it should be understood that the Chinese and Hong Kong stock markets have remained weak since mid-June, and investors have taken a wait-and-see attitude and have not dared to enter the market.

In fact, in the case of uncertain market conditions, as a long-term investor, it should not overreact to short-term market volatility. Asset allocation and risk diversification can reduce the impact of market volatility on the investment portfolio. Since the Sino-US trade war, the US Dow Jones Industrial Average, the S&P 500 and the Nasdaq index have all steadily increased. Therefore, investors can consider focusing on overseas markets, not only to spread the risk of a single market in Hong Kong stocks, but also to earn additional returns.

In addition, investors can also pay attention to alternative investments that are less relevant to the stock market, such as real estate, private equity funds, hedge funds and art. The future development of the Sino-US trade war remains to be seen, but it is imperative to prepare and organize the cooperation of its own investment groups.

The author is the chief executive of Huiye Securities and a licensee of the Securities and Futures Commission. The above is for reference only and does not constitute any investment advice.