C hey. Please help me with pepe.
Post
GiangBh Crypto
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Today SG is as cool as autumn in HN, everyone 🥰
While waiting for the temperature to continue to cool down like yesterday as I've written, let me share a bit about the issue that many of you are concerned about: What should we choose in times of inflation?
This is just a personal opinion, everyone can refer to it:
💥 The concern about global inflation has been repeated many times in financial history.
- Holding a lot of cash when inflation is high will gradually lose value --> keep a portion (about 1 year of spending) to manage during emergencies.
- The remaining part should be allocated to channels that have the potential to resist depreciation and growth to surpass inflation:
1. Traditional safe-haven assets:
- Gold: Considered the top hedge against inflation. In the short term, it fluctuates according to USD & interest rates, but in the medium & long term when inflation is high, it retains good value.
- Government bonds (short term is better):
When interest rates rise, bond yields are higher, safe, and easy to liquidate. (In cases of strong inflation, real interest rates turn negative, so long-term bonds may not be a good choice)
- Real estate: usually increases with inflation, but requires large capital + poor liquidity --> suitable for the long term.
2. Risky assets but with the potential to outperform inflation:
- $BTC is considered digital gold in the long term. In the short term, it obviously fluctuates strongly based on sentiment, but the halving cycle and long-term cash flow still support it. Top coins with solid fundamentals and ETFs are also good.
- Stocks in various sectors: commodities, energy, AI technology... --> because companies that can transfer costs to customers often perform well during high inflation.
-->> When it reaches a stage that needs growth beyond inflation, interest rates will have to be lowered, at that time top coins & stocks will soar.
💥💥 It's best to diversify, everyone, don't put everything into one type, split your portfolio specifically, for example:
30% gold & commodities + 30% stocks/top coins + 20-30% short-term bonds/short-term deposits + 5-10% cash reserves.
While waiting for the temperature to continue to cool down like yesterday as I've written, let me share a bit about the issue that many of you are concerned about: What should we choose in times of inflation?
This is just a personal opinion, everyone can refer to it:
💥 The concern about global inflation has been repeated many times in financial history.
- Holding a lot of cash when inflation is high will gradually lose value --> keep a portion (about 1 year of spending) to manage during emergencies.
- The remaining part should be allocated to channels that have the potential to resist depreciation and growth to surpass inflation:
1. Traditional safe-haven assets:
- Gold: Considered the top hedge against inflation. In the short term, it fluctuates according to USD & interest rates, but in the medium & long term when inflation is high, it retains good value.
- Government bonds (short term is better):
When interest rates rise, bond yields are higher, safe, and easy to liquidate. (In cases of strong inflation, real interest rates turn negative, so long-term bonds may not be a good choice)
- Real estate: usually increases with inflation, but requires large capital + poor liquidity --> suitable for the long term.
2. Risky assets but with the potential to outperform inflation:
- $BTC is considered digital gold in the long term. In the short term, it obviously fluctuates strongly based on sentiment, but the halving cycle and long-term cash flow still support it. Top coins with solid fundamentals and ETFs are also good.
- Stocks in various sectors: commodities, energy, AI technology... --> because companies that can transfer costs to customers often perform well during high inflation.
-->> When it reaches a stage that needs growth beyond inflation, interest rates will have to be lowered, at that time top coins & stocks will soar.
💥💥 It's best to diversify, everyone, don't put everything into one type, split your portfolio specifically, for example:
30% gold & commodities + 30% stocks/top coins + 20-30% short-term bonds/short-term deposits + 5-10% cash reserves.
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee. See T&Cs.