CICC has advised investors to increase their exposure to stocks and gold as a hedge against potential inflation risks. The recommendation follows forecasts of compensatory increases in U.S. CPI data for December 2025, January 2026, and April 2026. CICC suggests that stronger-than-expected U.S. inflation could prompt the Federal Reserve to slow interest rate cuts, tightening global liquidity and creating uncertainty for major asset classes.
To navigate these potential challenges, CICC recommends boosting allocations to commodities, stocks, gold, and U.S. Treasury bonds, particularly during market pullbacks. This strategy aims to protect portfolios from inflationary pressures and the resulting economic impacts.
CICC Advises Increasing Stocks and Gold to Mitigate Inflation Risk
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