Tariff Reversal, Currency Devaluation, and Soaring Gold: Opportunities and Challenges Amid Market Turbulence
Just when it seemed that the China-U.S. trade war would temporarily calm down, the U.S. suddenly announced a 100 billion dollar tariff exemption on Chinese goods, including phones and computers! The stock market initially soared, but then news of a 'misinterpretation' emerged, causing investors' hearts to nearly stop. Fortunately, it was ultimately confirmed that there was indeed an exemption, but everyone knows that Trump's 'turnaround speed' is faster than flipping a book, and the good news could quickly turn into bad news, intensifying market risk and uncertainty.
Dollar Devaluation and Currency War
The dollar has fallen below the 100 mark, hitting a two-year low. Although devaluation helps alleviate pressure on U.S. Treasury bonds and stimulates exports, the renminbi is depreciating even faster, with a 4% drop against the euro in a week. The market is beginning to worry about the stability of the dollar, as the devaluation of currencies worldwide seems aimed at securing export advantages. However, this global currency devaluation game has buried many hidden dangers.
Impact on Cryptocurrencies: Currency devaluation usually prompts investors to turn to hard currency assets, including gold and cryptocurrencies. As the dollar becomes unstable, the demand for crypto assets like Bitcoin may rise, especially as a hedge against inflation and currency devaluation.
Gold Soars, Risk Aversion Soars!
Gold prices broke through $3,250 in just three days, with institutions calling for a price of $3,300. Amid uncertainty, gold's status as a hard currency is once again solidified. In contrast, U.S. Treasuries are gradually neglected, and investors are shifting funds from traditional assets to gold and cryptocurrencies, which have become new safe havens.
Chinese Electric Vehicles Make a Comeback in the European Market
Interestingly, China's electric vehicle industry has found new opportunities in Europe. Europe has imposed tariffs on Chinese electric vehicles, but China countered with a 'price increase for tax exemption', setting a bottom price of 30,000 euros. Riding the wave of renminbi devaluation, Chinese electric vehicles have become more competitive in the European market. This strategy is quite clever!
U.S. Cuts NASA Funding, Space Program Encounters Cold Reception
In addition, the U.S. government has cut NASA's research funding by half, and even Musk couldn't help but complain. This could not only affect SpaceX's cash flow but also impact the United States' military strategy in space. The potential implications of the space race should not be underestimated, as it may bring changes to future competitions for space resources.
Investor Reminder: Strategies Amid Market Turbulence
The current market is tumultuous, and investors need to fasten their seatbelts. According to the 'Fear and Greed Index', when the index is below 20, one can gradually increase positions; conversely, if it exceeds 55, one should quickly reduce positions to protect capital. Remember: do not exceed 5% in any single asset position, and maintaining flexibility is key.
