Financial crisis is a word that many people are afraid of. In capitalist countries, financial crises always occur periodically, which is mainly related to the highly free economy and complex operation principle of capital markets in capitalist countries. Every financial crisis will have a certain impact on the world economy and bring about a sharp drop in asset prices.

So if there is a financial crisis, what should we do to protect our assets from depreciation?

The financial crisis is essentially a redemption crisis induced by liquidity crisis.

Due to various reasons, the capital flow breaks in the process of economic operation, which will lead to a large number of corporate bonds defaulting, and then affect bank financial institutions. Excessive bad debts of bank financial institutions will cause depositors to worry, lead to a run and lead to bank bankruptcy.

For example, the financial crisis in 2008 was a series of shocks caused by the default of a large number of subordinated debts bound by American real estate.

When the financial crisis occurs, all kinds of asset prices will be obviously impacted. In 2008, the US subprime mortgage crisis triggered an international financial crisis, and both the US stock market and the US property market plunged. In order to protect their assets from depreciation, we first need to avoid the property market and the stock market.

However, the situation in China is different. China's financial system is well regulated, and the risk exposure of financial derivatives is small, so the possibility of financial crisis is very small. The financial crisis is generally triggered by developed capitalist countries. When a crisis occurs, there will be a liquidity crisis, which will lead to the decline of all asset prices.

In case of crisis, the best way is to deposit money in the bank and get bank interest. After the crisis, the central bank will inject a lot of liquidity. When the liquidity shock eased, the stock market stopped plunging and gold began to rise significantly. At this stage, you can invest in gold appropriately.

When the crisis passes and the economy recovers, investors will abandon gold and buy risky assets represented by the stock market, which is generally ahead of the real economy. Therefore, people will generally see the macroeconomic recovery after the stock market has risen for a period of time.

For ordinary people, cash is the best choice when they can't see clearly, while investors who are familiar with the financial market invest in gold after the liquidity crisis is solved, and sell gold to embrace the high-quality assets of the stock market after the stock market begins to strengthen.