Equity Fund Will Enable The Assets Of The Foundation To Gain Rapid Appreciation.

The long-term performance of equity funds and bond funds is closely related to the stage of the real economy and people's expectations for the next stage.

When the real economy is in the stage of recovery or anticipation of recovery, equity funds will make rapid growth in capital assets.

During the period from October 2008 to August 2009, most equity funds grew by nearly 40%.

When the real economy is in recession or anticipation stage, bond funds will surprise the people.

During the period from September 2008 to December, the Shanghai Composite Index fell by 1.65%, while the net growth of most bond funds exceeded 10%.

Sometimes, however, the people will find out.

And bond funds are hard to make profits, or even in a stage of loss. What causes the state?

In 70s, the major developed economies of the United States, Europe, Japan and other major economies plunged into a "stagflation" period of 10 years - stagnation of economic growth, rising unemployment rate and high price operation.

Among them, the US stock market rose only 10 in the past 16% years. The lowest point (62.3 points) and the highest point (120.2 points) were only twice the difference.

In the 10 years of the German market, the DAX index slipped from 582.2 to 480.9, and the lowest point and the highest point were only less than 60%.

In early 90s, South Korea and Taiwan experienced a "stagflation" process, that is, the slowdown in economic growth and the structural downtrend of the natural growth rate of the economy. Meanwhile, CPI stepped up.

But the process is not as violent as the stagflation in developed countries. It can be used as a sample of "stagflation" in the structural pition period of emerging market economies.

Between 1987 and 1997 (South Korea's "stagflation" began in 1987), the Korean stock market rose to zero.

The yields on Korean bonds were oscillating at a level of 10% to 15% before 2000.

Before 1985, won long term national debt.

A downward trend.

After the Plaza Agreement, hot money inflows, prices rise and yields on treasury bonds rise.

After 1993, the yields and prices of Korean bonds went down until the outbreak of the Asian financial crisis.

The trend of Taiwan is similar to that of Korea, but CPI and bond yields remain at a relatively low level.

Monetary tightening policies and policies in Taiwan

The restrictions helped Taiwan successfully escape the impact of the Asian financial crisis on the bond market.

In fact, not only overseas markets, but also the vast majority of A shares.

A non bank financial 300 index ETF linked fund was established in January 22, 2015, and its net worth has shrunk by 19.20% in the latest three months.

An active fund, which was set up in January 12, 1993 to hold small cap stocks, has accumulated a net loss of more than 33.05% in the last three months.

What kind of fund can we choose to make profits in the period of economic restructuring? Let's take a look at the following three types of funds:

First, a resource industry fund established in August 16, 2011 has risen 16.51% in the last six months, while in the same period of time, the Shanghai and Shenzhen 300 index ETF is only 4.74% of the fund's net value; secondly, a gold theme (QDII) fund established in May 6, 2011 has accumulated a 14.45% increase in net worth since the beginning of this year. In the same time period, the Shanghai and Shenzhen 300 index ETF has shrunk 15.24% of the fund's net value; third, a QDII oil fund set up in September 29, 2011 has increased 8.10% per cent in the latest three months, while in the same period, the Shanghai and Shenzhen 300 index ETF linked to the fund's net value has shrunk.

Some people will question why the main oil, gold and resource stock fund can be an exception when the economy is in a structural pformation and other types of funds are not performing well. First of all, in the context of the global stagflation, governments are generally implementing loose monetary policies to stimulate economic growth and releasing liquidity frequently.

Most of the funds will be selected for buying stocks such as oil, gold and resources one after another, both for consideration of current security and value preservation and for future appreciation.

Second, most oil, gold and resource stocks have experienced a long and large adjustment in the past, and have even fallen.

For example, the net value of an oil and gas theme (QDII) fund has shrunk by 37.86% in the latest year.

Facts show that Buffett, Rodgers, and other investment gurus are just because they are good at grasping the opportunities formed by the "valuation depression" and create another myth of wealth.

Therefore, what the basic people should do at this stage is to choose their own risk preference targets in the main oil, gold and resource stock funds according to their own risk preferences, so as to ensure that assets can be maintained and appreciated in the period of economic restructuring of the two stocks.