We are bullish on three core asset classes over the long term: A-shares, gold, and commodities. It is important to note that this refers specifically to long-term trends, not short-term trading advice. The core premise of investing is to distinguish between long-term and short-term logic, as the investment strategies differ entirely. U.S. stocks are currently overvalued and will only offer long-term investment value after a deep correction brings them back into a healthy valuation range.

The Core Logic of China’s Capital Markets

The fundamental rationale for a bullish outlook on the Chinese market lies in the structural changes currently underway in the global order. All of America’s past advantages were built upon the globalized leverage system it controlled—spanning currency, trade, culture, and military dimensions—which underpinned the exceptionally high profit margins of U.S. corporations. However, the U.S. is now actively implementing the “Pennsylvania Plan,” driving deglobalization and contracting both geographically and economically. It is dismantling the very system it once relied on, attempting to rebuild its exploitation framework through a global restructuring of the international order.

This deliberate act of self-destruction has, paradoxically, presented China with a rare historical opportunity. When the U.S. system was at its zenith, China would have had to pay an exorbitant price to break free from that order; now that the U.S. is personally dismantling its own structure, it has effectively opened a window of opportunity.

China’s Core Advantages and Potential

China has now secured two core pillars: supply chains and military power. Throughout human history, a nation possessing both formidable industrial production capacity and military strength cannot remain subject to external constraints in the monetary, cultural, political, and geopolitical spheres for long. Historically, all powerful industrial nations have been matched by corresponding financial market services; the current mismatch between China’s national strength and its status in financial markets represents a vast space for development.

In particular, the ripple effects of Taiwan’s reunification are significant: once reunification is achieved, the U.S. blockade of the Asia-Pacific island chain will be broken, its military deterrence in Japan, South Korea, and Southeast Asia will be substantially weakened, and the process of economic integration among China, Japan, South Korea, and Southeast Asia will accelerate dramatically. This will form the largest regional economic bloc in human history by population, unleashing economic potential that is difficult to estimate.

It should be noted that China’s regional economic integration will not follow the European model of monetary union without fiscal integration. Instead, it will likely prioritize the free flow of goods and people, while leveraging Hong Kong to resolve the constraints of the “impossible trinity.” Once China gains control over both supply chains and currency, it will effectively hold dual pricing power over commodities and currency, significantly enhancing the autonomy of its economic cycle.

America’s Structural Dilemma

U.S. national interests have been built upon global turmoil; the two world wars and the Cold War yielded immense benefits for the United States. However, following the collapse of the Soviet Union, the world has remained largely peaceful—with the exception of the Middle East. Paradoxically, during this era of peace, the United States has experienced three major economic crises in succession: the dot-com bubble, the subprime mortgage crisis, and the stock market circuit breaker, while other nations have rapidly developed in a stable environment.

The larger the economic scale formed through regional economic integration, the stronger the ability to resist U.S. trade bullying. The European Union is a prime example: once a regional economy forms a community of shared interests, it gains greater maneuverability in resisting external pressure. This is also the fundamental reason why the United States is so determined to block regional economic integration.