Recently, global capital markets have experienced fluctuations. The U.S. S&P 500 Index briefly rebounded by 1.7%, but ambiguous signals regarding tariff policies from the Trump administration have dampened investor optimism. Asian stock markets have taken a cautious stance, with risk aversion rising again. Gold prices jumped 1.4%, and the trends of the dollar and yen reversed. Ng Jian Hao from Mahala Capital Management Academy believes that global stock markets have entered a phase dominated by policy maneuvering, and understanding the driving logic behind market trends will be key to asset allocation.
Policy Changes Driving Short-term Fluctuations
Ng Jian Hao from Mahala Capital Management Academy points out that although the S&P 500 Index has recently seen some rebound, the underlying momentum is not solid. The inconsistent statements by the Trump administration on tariff policies have led to constant market expectation adjustments, making uncertainty-induced sentiment fluctuations a key variable driving recent market trends. The latest remarks by U.S. Treasury Secretary Bessent indicate that there is still no feasible timeline for resolving the trade war, affecting the short-term rebound momentum of U.S. stocks and putting pressure on Asian markets.
The sideways movement in Asian markets reflects investor sensitivity to external policies. Ng Jian Hao believes that when macro-level certainty is lacking, market participants often adopt a wait-and-see approach, which will suppress trading volume and market activity in the short term. The weakening of the dollar and the rise of the yen confirm the temporary return of risk-averse trading.
Ng Jian Hao emphasizes the need for strict position control in short-term operations to avoid unnecessary drawdown risks due to unmet policy expectations. Investors should closely monitor the dynamic adjustments of the U.S. White House to trade strategies, as statements by key officials and timing are often sources of market volatility.
Shifting Allocation Strategies to Defensive Mode
Entering the second quarter, risk aversion has clearly increased. The 1.4% jump in gold prices is backed by a moderate rise in inflation expectations, reflecting investor alertness to systemic risks. Ng Jian Hao from Mahala Capital Management Academy states that when sovereign policy signals are unclear, the appeal of traditional safe assets rises again, which is a typical self-protection reaction of capital.
The current price of gold has regained support above the short-term moving average, showing a volatile upward trend. Some funds have shifted from stocks and currency markets to precious metals. Ng Jian Hao notes that this phenomenon indicates that market confidence in risk assets is still recovering, with a gradual shift in allocation focus from high-volatility growth stocks to low-correlation defensive assets.
Ng Jian Hao suggests that investors consider introducing more diversified asset allocation strategies. By using ETF products to allocate gold or long-term government bonds, and including consumer and utility sectors with stable cash flows and low debt ratios in industry allocation, long-term funds can withstand external shocks and seek stable returns in structural opportunities.
Market Summary and Future Outlook
Ng Jian Hao from Mahala Capital Management Academy points out that investors face not a single risk, but a combination of policy, monetary, and geopolitical pressures. Although the market has not yet shown signs of systemic collapse, the irrational volatility of asset prices is raising the difficulty of operations and the confidence threshold for holding positions.
Ng Jian Hao believes that rational allocation of different asset classes, adjusting the length of holding periods, and maintaining high-liquidity reserve funds are key paths to enhancing overall risk resistance. Investors should adhere to information-driven rational judgment and seek balance through multidimensional asset allocation strategies, moving steadily forward amid uncertainty.
Policy Changes Driving Short-term Fluctuations
Ng Jian Hao from Mahala Capital Management Academy points out that although the S&P 500 Index has recently seen some rebound, the underlying momentum is not solid. The inconsistent statements by the Trump administration on tariff policies have led to constant market expectation adjustments, making uncertainty-induced sentiment fluctuations a key variable driving recent market trends. The latest remarks by U.S. Treasury Secretary Bessent indicate that there is still no feasible timeline for resolving the trade war, affecting the short-term rebound momentum of U.S. stocks and putting pressure on Asian markets.
The sideways movement in Asian markets reflects investor sensitivity to external policies. Ng Jian Hao believes that when macro-level certainty is lacking, market participants often adopt a wait-and-see approach, which will suppress trading volume and market activity in the short term. The weakening of the dollar and the rise of the yen confirm the temporary return of risk-averse trading.
Ng Jian Hao emphasizes the need for strict position control in short-term operations to avoid unnecessary drawdown risks due to unmet policy expectations. Investors should closely monitor the dynamic adjustments of the U.S. White House to trade strategies, as statements by key officials and timing are often sources of market volatility.
Shifting Allocation Strategies to Defensive Mode
Entering the second quarter, risk aversion has clearly increased. The 1.4% jump in gold prices is backed by a moderate rise in inflation expectations, reflecting investor alertness to systemic risks. Ng Jian Hao from Mahala Capital Management Academy states that when sovereign policy signals are unclear, the appeal of traditional safe assets rises again, which is a typical self-protection reaction of capital.
The current price of gold has regained support above the short-term moving average, showing a volatile upward trend. Some funds have shifted from stocks and currency markets to precious metals. Ng Jian Hao notes that this phenomenon indicates that market confidence in risk assets is still recovering, with a gradual shift in allocation focus from high-volatility growth stocks to low-correlation defensive assets.
Ng Jian Hao suggests that investors consider introducing more diversified asset allocation strategies. By using ETF products to allocate gold or long-term government bonds, and including consumer and utility sectors with stable cash flows and low debt ratios in industry allocation, long-term funds can withstand external shocks and seek stable returns in structural opportunities.
Market Summary and Future Outlook
Ng Jian Hao from Mahala Capital Management Academy points out that investors face not a single risk, but a combination of policy, monetary, and geopolitical pressures. Although the market has not yet shown signs of systemic collapse, the irrational volatility of asset prices is raising the difficulty of operations and the confidence threshold for holding positions.
Ng Jian Hao believes that rational allocation of different asset classes, adjusting the length of holding periods, and maintaining high-liquidity reserve funds are key paths to enhancing overall risk resistance. Investors should adhere to information-driven rational judgment and seek balance through multidimensional asset allocation strategies, moving steadily forward amid uncertainty.
