04 in the concussion city, the effect of allocating your assets in this way is better

In a volatile city, the need to resist risk and reduce volatility is often stronger. At this time, we can also practice the four-step asset allocation method and asset allocation strategy we mentioned earlier.

1. Examine your investment goals and risk preferences

In the face of market shocks, it is easy to panic because there is no goal. Think about it, is the current investment situation within the scope of your own risk tolerance? If the market continues to rise or fall, will your account be safe?

2. Examine the scope of investment

How about a careful analysis of the current asset relevance? Is there a need for more risk-resistant and less volatile assets?

If you want to increase low-and medium-risk assets in response to volatile markets, you can allocate them through funds. Common options include:

(1) medium-and low-risk monetary funds and bond funds. You can find it in Financial Management tab > Fund ranking > screening.

(2) dividend fund.Dividend strategies are more popular when markets shift to value style in volatility.

(3) low volatility fund.

(4) balanced fund and multi-allocation fund.

(5) resisting risk and withdrawing small funds.

Enter the details page of Futuo Elephant Wealth single Fund > Fund indicators > Anti-risk ability can be viewed.

However, the indicators of anti-risk ability are often calculated based on historical performance and can not represent future returns.

There are many choices, and which strategy and which fund to use for asset allocation still depends on your investment goals and risk preferences.

3. Determine the proportion of asset allocation

After adjusting the scope of investment, you can see what the proportion of high, medium and low risk products is, and whether they are in line with their expectations and affordability.

Take the strategy of stock-debt balance as an example. Suppose that Xiao Ming, a friend of Fu Tu Cai School, usually allocates 70% stocks + 30% bonds. When the stock market fluctuates greatly and the bond yield is better, he can allocate a little more bonds, such as 60% stocks + 40% bonds. This makes the allocation more balanced.

For example, when the market cycle changes, it is easy to fluctuate. Compared with Merrill Lynch clock, we can consider increasing the allocation proportion of assets with better returns in the corresponding period and reducing the allocation proportion of other assets.

• Recovery period: the economy is up and inflation is down. Return on assets in the following order: stocks > bonds > commodities > cash

• Overheating period: the economy goes up, inflation goes up. Return on assets ranked as follows: commodities > stocks > cash / bonds

• Stagflation: the economy goes down and inflation goes up. Return on assets: cash > commodities / bonds > stocks

• Recession: the economy goes down and inflation goes down. The order of return on assets is bonds > cash > stocks > commodities.

4. Regular inspection and rebalancing

In a volatile city, the market changes rapidly, and it is necessary to periodically review the proportion of asset allocation and rebalance it.

In addition, fixed investment and long-term doctrine can also help investors better cope with volatile markets.

Fixed investment can help us take advantage of market fluctuations to smooth Jiancang costs, adhere to investment discipline, and draw a beautiful "smile curve".

It is difficult to insist on human nature to invest in market fluctuations, but long-term doctrine can prevent us from being dominated by temporary emotions in the ups and downs of the market.