1, investment bonds. Bond is a fixed income asset. During the period of deflation, the market interest rate may rise, and the interest income of investment bonds will increase. However, not all bonds are suitable for holding during deflation. Generally speaking, we can consider investing in national debt. National debt is issued on the basis of national credit, and its default risk is extremely low, which can provide investors with stable cash flow income. In addition, those publicly traded treasury bonds also provide better liquidity.
2. buy stocks. Stock is an equity asset. Deflation may reduce the profit margin of enterprises and affect the appreciation of their stocks, but not all stocks perform poorly during deflation. Generally speaking, stocks with stable cash flow, strong profitability, low debt level and high cash dividend are still worth investing in.
3. Invest in a strong currency in the foreign exchange market. During the period of deflation, the currencies of some countries may appreciate sharply. Investors can consider investing in some safe-haven currencies whose appreciation is affected by deflation, such as US dollar, RMB and Swiss franc. These currencies have high market recognition and good liquidity, and investors can invest in these currencies or foreign exchange assets to preserve their value and get a certain return. It should be noted that investing in foreign exchange is risky, and investors should pay attention to setting stop loss and stop loss to control capital positions.
In the period of deflation, buying money fund is also a very good investment choice. Monetary fund is a fund that mainly invests in short-term bonds, bank deposits and other money market instruments. These assets usually perform well in times of deflation, making it easier to meet liquidity needs. Deflation will increase the purchasing power of money, and investors can further realize currency appreciation by purchasing money funds. In addition, the threshold for investing in money funds is relatively low, the purchase and redemption are relatively flexible, and it is also very friendly to novice investors.