NEW YORK, June 13, 2022 /PRNewswire/ -- Against the backdrop of rising inflation and global supply chain disruptions due to the ongoing spread of the COVID-19 pandemic and geopolitical tensions, Jerry Wang, founder and CEO of Haitou Global, recently participated in a seminar held by The Chinese Finance Association (TCFA), focusing on the outlook of global economy and investment opportunities in both developed and emerging markets.
At the event, Jerry, together with three other speakers, discussed the potential impact of rising inflation and the Fed's rate hike on the global economy and capital markets. Jerry also shared his insights on the current US stock market and how to manage investment portfolios under the current situations.
Speaking about the impact of the surging inflation in the US, Jerry said that an inflation rate higher than 8% is something to worry about and while the high inflation in the US may last for some time, the probability of a hyperinflation is small. Indeed, rising prices have caused some pain to American companies and individuals, but consumers' demand is still robust thanks in part to the increase of households' financial assets and the government's relief policies during the pandemic, according to Jerry.
While the Federal Reserve is working very hard to bring inflation back to normal, he noted that there is no need for investors to panic, because inflation and monetary policy may not be the sole causes of the recent turmoil in the US stock market.
Asked about investing strategies amid various challenges faced by the world today, Jerry said that one of the most important things is to balance and diversify your portfolio, while avoiding aggressive adjustments.
In the case of Haitou Global, the strategy is global asset allocation covering both traditional assets like stocks and bonds, and alternative assets such as venture capital and private equity. As an emerging asset class, digital assets are also becoming plausible options, he said.
Geographically, Haitou Global invests not just in the US, but also in emerging markets including Asia, Africa and Latin America. Given that the US is the largest economy in the world, it still accounts for a significant part in the company's portfolio, though emerging markets are also indispensible from the perspective of diversification.
What's more, a lot of opportunities are being seen in emerging markets as there are still many favorable factors in these markets such as demographic dividend and technology upgrade, according to Jerry who added that different economic realities in different markets have encouraged Haitou Global to target multiple regions instead of just one single region.
In regard to Haitou Global's reponse to the pandemic, Jerry said that the company has stuck to its long-term allocation principle focusing on balancing and diversification. As the US stock market continues to fluctuate, he said it would be wise to avoid heavy holdings and pay attention to hedging. But some of the tech stocks do look attractive at this point as their prices have retreated to the pre-pandemic level, he added.
SOURCE HaitouGlobal
