Bi-directional economic fluctuation two-sided investment strategy

⊙ China Business Earnings Enhancement fund manager Mao The April economic data has been almost all out, including CPI, PPI, import and export data continue to fall, electricity and steel prices and so on. The economic data for April, which contrasts with March data, are not optimistic, suggesting that our economic recovery is not smooth sailing, that some months of economic recovery may be strong and that some months may turn the other way.　　A fall in the economy has also affected the performance of equities and debt markets, which were weaker in April than in March, while bond markets were stronger than in March. Since there is a strong two-way volatility in future economic trends--to be good or bad, our investment strategy should be defensive. If the stock position is too low, blindly conservative is likely to miss the good market recovery, the position is too high, not only the performance fluctuations, the timing is also relatively passive. Because the economy is likely to recover in the current year, but the process will be more tortuous, reverse investment may be a good strategy.　　That is, to increase some stock positions in times of bad economic data, and to reduce the number of stock positions at a time when some economic data is performing well. In the operation of bond fund investment, I also emphasize that there is a need to be defensive, that is, "both hands", on the one hand, active investment in High-yield long-term fixed-income corporate bonds, if the future economic recovery is not as expected, these bonds in the future estimated to give our bond fund investors a more stable and reliable income; Also need to invest in the right amount of convertible bonds with equity characteristics, although the convertible bonds are more volatile than the general bond, but it can hedge the inflation risk of fixed-income bonds, and in the period of good stock market performance, will bring excess income to bond funds.