How to invest

Comprehensive consideration of risk-reward ratio

Long-term investment is still a point of opportunity in the future

Wealth management needs to make an overall plan, from the simple purchase thinking in the past to the planning thinking. You need to clarify your own goal planning, evaluate the available assets and the corresponding risk tolerance level, and make a reasonable asset allocation based on your life goals.

Move towards diversified asset allocation and abandon the habit of single asset to dominate the world. In the US subprime mortgage crisis in 2008, the stock market fell sharply across the board, but the bond market generally received good returns. Therefore, holding diversified assets can mitigate the risks caused by the decline of a single asset. Reasonable asset allocation can be carried out in bonds, equity, cash management, large insurance policies, family trusts, real estate, and even globally.

We must abandon the high-growth era of low-risk and high-return thinking, and moderately lower the rate of return expectations. In 2018, China's GDP growth rate continued to slow down, and the era of double-digit growth rates in the early years has passed. Therefore, in the era of the growth rate correction, some non-standard asset investments can be used to pursue excess returns. This can avoid a lot of illegal financial risks, as well as some extreme fluctuations.

In the investment process, preference must be restrained and the inertial thinking that has been formed for a long time must be restrained. It is said that failure is the mother of success, but in fact in investment activities, inertial thinking is our own big enemy. When the cycle changes, we must abandon the previous procyclical investment ideas, such as increasing leverage and heavy physical assets, improve our own investment system and investment philosophy, and pursue optimal returns through the allocation and balance of large-scale assets.

Persist in long-term investment, look to the future, and pay attention to the beta returns of the market. At present, there will be fewer and fewer opportunities for short-term excess returns, and some longer-term investments must be made. Many traditional technical methods are now unable to eliminate the risk of a single asset or even an investment portfolio. Learn to use time for rewards.

There is no once-and-for-all investment portfolio, and you must learn to maintain a dynamic balance of assets. In the past procyclical, many people did not actively adjust their real estate investment for ten or twenty years, and did not buy or sell. Under the current environment, it is more suitable to adopt a buying and adjusting strategy.

Opportunities and risks coexist

The following areas are worth looking forward to

The first is the new investment opportunities brought about by technological progress and innovation. With the launch of the Science and Technology Innovation Board, the stock market in the secondary market has seen many positive reactions. There will also be many private equity investment opportunities in the primary market, such as 5G, new energy, high-speed rail, high-end equipment and other fields, which will usher in an unprecedented wave, and there will be more room for development in the future.

Secondly, this year's market risks may be released to a certain extent. The stock market is affected by corporate fundamentals, and there may not necessarily be systematic and trending opportunities. However, in some high-rated credit bond products, there is still value worthy of allocation, such as trusts, asset management plans, etc., which can bring about a fixed return of about 6-8%. The convertible bond market has both valuation and growth potential and can be focused on.

Finally, we have to put our eyes on a larger time and space, so that we can see the value depressions of some assets on a global scale. For example, real estate investment in some emerging markets and assets represented by gold may see considerable increases due to the impact of the US economy, and crude oil has shown a very good recovery this year after adjustments last year.

In summary, there are some structures in equity investments represented by new technologies, fixed income investments represented by high-credit bonds and convertible bonds, specific currencies represented by Australian dollars, and real estate investments in emerging markets. Sexual opportunities are worthy of our attention and research.

High-quality wealth management is finance

The organic combination of consulting and service

Wealth management is essentially the financial industry, which is a comprehensive consideration of the pursuit of high-quality assets and the risk-return ratio. The core content of wealth management revolves around investors' financial capital, which requires wealth management to be carried out within the framework of finance and asset management. When carrying out asset allocation, we must have a concept in mind, that is, for stock products, the release of potential risks is inevitable, so we must respect risk, respect supervision, and respect the law. If you want to continue to maintain and increase the value of wealth management in the current financial environment, you need to do three things: reduce the potential return on assets expected; change from a single asset to a portfolio of assets; change from a pure product purchase to a professional financial adviser consult.

Wealth management has typical consulting industry attributes, and institutional professionalism is particularly important. On the one hand, we need to help clients' financial capital to increase steadily. On the other hand, in a long time dimension, wealth management involves all aspects of family life, including education, medical care, retirement, inheritance, charity, identity planning, taxation, etc. This requires clients to seek advice from professionals, and professional wealth management agencies need to provide advice on the efficient management of clients’ wealth, family business and family members.

Wealth management is ultimately a service industry, which must provide customers with a safe, convenient and pleasant customer experience. Some complex financial transactions cannot be completed in one contact and require multiple interactions with customers. For example, Edward Jones, an independent financial advisory company in the United States, emphasizes convenience and face-to-face services.

In the context of continuous technological advancement, combining finance, consulting, and service organically, I believe that both Chinese high-net-worth clients and ordinary middle-class families will usher in a new pattern of higher-quality wealth management.

Wealth management is a Pacific-level business and has broad room for growth in China. Every wealthy family needs a financial office, ranging from buying insurance and managing cash to wealth management, asset allocation, and even family offices. Professional wealth management has real value to financial stability, family and social harmony. Wealth management is not only a noble profession, but also a great career!