The analysis of Huaan Fund shows that the temporary sharp reduction of AP deposits is in the period of rising economic risks. Now the market is more and more worried about the economy, the monetary policy is more and more loose, and gold has a strong foundation. We will continue to look at the future investment and allocation value of gold.
The information of this federal deposit has a great influence on the world market and financial market.
Regarding the gold market, Huaan Fund believes that there are the following points.
The weak global macroeconomic environment has enhanced the investment value of gold.
The world macro-economy has superimposed the impact of the epidemic and determined a weak state. Because of the uncertainty of epidemic situation, this uncertainty is defined as risk in finance. The spread of the epidemic, the medical conditions of the epidemic and the improvement of the epidemic all have certain risks in the world. This kind of risk will have a negative impact on economic activities and macroeconomics. For example, the spread of the epidemic in South Korea, such as Italy, has affected economic activities and trade behavior. The Fed took this approach. In order to avoid the impact of the world economic recession, this information once again proves the core reason why we used to judge the investment value of gold. The world macro-economy is weak, and this weak environment is valuable for gold investment.
Under extremely loose conditions, the value of gold performs better.
We saw that the US 10 national debt fell below 1% yesterday, and the actual innovation was low since 1953. In this pessimistic situation, the insured value of money is more prominent under this negative interest rate, that is, relative to the current inflation level, the negative interest rate of 10 national debt has reached more than 1%.
During the financial turmoil, gold played a more effective role in asset allocation.
We see that the changes in the world financial market are increasing. In this process of asset allocation, money actually played a better role. The core of asset allocation is to make the portfolio more stable through weakly correlated and negatively correlated assets. Especially during the financial turmoil, the function of gold as an asset allocation is more effective. Because gold hedging itself is a natural function, it is more prominent in a specific market environment. Many investors invest in gold. I believe there is no growth in the short term, and there is no obvious benefit. Of course, from the opening price 1976 to today, the annual rate of return is over 5%, which is second only to stocks in large financial assets. Why do we feel bad when investing in gold? The core reason is that we often compare it to insurance. For example, the best way to buy insurance is not to have insurance. Of course, if there are risks, if there are extreme situations, the role of insurance will be more obvious.
Generally speaking, AP's storage of such unconventional information is an emergency action to deal with world macroeconomic changes, US macroeconomic shocks and huge uncertainties in the future. After this information decline, AP has a certain space for information decline, which is very beneficial to gold. The price of gold has played its due role in asset allocation, such as fighting financial risks. When the market is extreme, this kind of capital preservation investment may reduce our portfolio. Avoid related losses. Therefore, in such an environment, the money we mentioned before is particularly risk-resistant, and it can also resist currency depreciation under the environment of low interest rate and negative interest rate. Of course, money has many other functions. Therefore, in the current complex market environment, golden light still exists. Investors are advised to pay attention to gold investment, and the core investment variety of gold investment in capital market is gold ETF.
According to Huaan Fund, the gold ETF they manage is the largest gold ETF in Asia, and its assets have increased by nearly 4 tons in the past two weeks. Investors have better realized the asset allocation function of the capital market through the gold ETF, such as our asset management. The Gold Exchange Trading Fund 999 is based on physical objects, with excellent management, and the rental income is fully subsidized to investors.
Judging from the situation in the last month, our liquidity has been greatly improved, with daily transactions exceeding 2 billion. Now the asset management scale is close to 654.38+000 billion. China gold ETF has many advantages. For example, we are denominated in RMB. For example, our comprehensive cost is the lowest compared with other ETFs. Because we have rental income and high liquidity, our efficiency is of course the highest in the world.