2024 Stocks and bonds will stutter. Zhang Yongchuan teaches the “barbell strategy” mixed stock and bond ETF | Anue Juheng-Taiwan Stock News

Cathay Investment Trust held the 2024 Investment Outlook Forum today (6th). General Manager Zhang Yongchuan pointed out that the U.S. CPI data dropped significantly in October. 10-Year Treasury Bond YieldIt has dropped from a high of 5% to a recent level of around 4.2%. It is believed that the Federal Reserve will raise interest rates for the last time in July this year, and may gradually cut interest rates starting from the second quarter of next year. As the economy bottoms out and rebounds in the first half of next year, the Federal Reserve is expected to begin to express its willingness to cut interest rates, emphasizing that most of the time in 2024, stocks and bonds will be bullish, and “you can make aggressive arrangements.”

Zhang Yongchuan recommends that investors adopt a “barbell strategy” for a balanced allocation. If they are worried about future yield fluctuations or the continuation of wars, on one end, they can pursue excess returns through markets with higher volatility or trending industries, such as Taiwan and the United States stocks and the AI ​​industry. At one end are safer assets with cash flow, yield, etc., such as U.S. bonds or investment-grade bonds.

Zhang Yongchuan said that in this way, you will not miss the rising stock market when the economy picks up. Partial allocation of high-rated bonds can continue to receive interest and reduce volatility. You can also enjoy the room for capital gains to rise when interest rates are cut in the future. “Barbell strategy “Following the rise and resisting the fall is a more prudent choice.

Yang Zhenghao, associate director of the Financial Strategy Department of Cathay Investment Bank, analyzed that stocks and bonds will have their own bright spots next year. Under the scenario of Higher for longer, he is optimistic about the performance of growth stocks. Investors can pay attention to the Taiwan stock market with the advantages of the semiconductor industry. It is recommended to include Cathay Taiwan Leaders 50 ETF (00922-TW), focusing on Taiwan’s 50 leading companies with large market capitalization, good liquidity, and stable profits, is an evolved version of the Taiwan stock market capitalization ETF.

In addition, AI trend stocks are representatives of growth stocks. Although they are promising in the long term, they are subject to constant fluctuations. Only investors who are familiar with the industry or carefully study relevant prospects, new products and other data can reduce the risk of being thrown out and want to grasp the AI ​​industry. Growth opportunities can be paired with another Taiwan stock high dividend ETF – Cathay Pacific High Dividend Sustainability (00878-TW), some AI concept stocks, and Taiwan’s high-quality sustainable high-dividend stocks, which can further reduce volatility.