Play it safe: When the market is bullish, you should be even more cautious
Two-Pronged Defense: When the Market Is Bullish, You Should Be Even More Cautious What Is a Two-Pronged Defense Strategy The two-pronged defense is our core investment strategy, which we have been implementing for over a month. Its core logic is to simultaneously guard against two extreme market sentiments: preventing forced sell-offs at market bottoms caused by excessive pessimism, and preventing chasing the market at highs driven by excessive optimism. At the onset of the crisis, global markets experienced a collective downturn: U.S., Japanese, South Korean, and European stocks, as well as A-shares, all fell in unison; gold prices dropped sharply in the short term; and oil prices soared. At that time, our primary objective was to prevent investors from becoming overly pessimistic. We highlighted opportunities for a U.S. stock market rebound, executed three rounds of position increases at the bottom of the gold market, and took profits on WTI crude oil positions above $110. ...