High-quality assets, the frequency with which they have been mentioned in recent years, is increasing.
Due to the pessimistic economic situation, the market's demand for high-quality assets is growing rapidly.
The worse the economic conditions, the more obvious the capital's thirst for high-quality assets.
When all market assets are on the path to devaluation, capital will prefer to wait and see, that is, cash is king.
However, most "economic crises" will print a large amount of money in the middle and late stages, and cash will show signs of rapid devaluation.
This forces capital to choose to buy high-quality assets to fight against currency devaluation.
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The underlying logic of high-quality assets is that they will always be sought after by capital, which is why they are called high-quality.
Even in times of economic crisis, high-quality assets will only experience some short-term fluctuations and will not have a significant decline.
In fact, as long as the economic crisis is effectively repaired, high-quality assets will eventually be favored and will appreciate in value.
However, many investors have a certain degree of "prejudice" towards high-quality assets themselves, and this understanding is instilled by the market.The market, through the form of price increases, has instilled in the public some concepts of high-quality assets, causing the public to take over these assets at high levels.
Therefore, what the public needs to popularize is the understanding of the underlying high-quality assets, rather than the superficial explanations.
Every time high-quality assets are mentioned, several words will burst out in people's minds.
Houses, stocks, gold.
The problem lies here, these are just the names of the assets, not the value of the assets themselves.
These are just a general category, not the essence of the assets being of high quality.
The real high-quality assets must not only be a general category, but also have special value.
So, understanding the assets themselves from the perspective of value is very easy to find high-quality assets.
The value corresponding to the assets is reflected in three aspects.Scarcity.
What is scarcity? Essentially, it means that the total quantity is limited and difficult to obtain.
People often say that gold retains value, but in essence, this is because of the scarcity of gold.
Perhaps you feel that gold is everywhere and can be bought with money.
But in fact, the total reserves of gold are relatively limited and possess a certain degree of scarcity.
The reason gold has historically retained its value is that once gold is recognized as scarce, it can be used to exchange for currency.
Currency can be issued more or less according to the situation, but gold cannot be issued, so its value retention effect is much better.
Scarcity is reflected in many aspects.
For example, houses within the second ring road of Beijing have scarcity because there is only so much space and a limited number of houses.
For instance, calligraphy and paintings by famous people, as well as antiques, are all scarce and cannot be replicated.For example, limited edition cars and limited edition shoes have already been proven to be value-preserving.
Even stocks, due to the limited number of shares, also have the attribute of scarcity.
Scarce assets, in the long run, are absolutely value-preserving because the scale of assets is limited, while there is more money in the market.
When money is not worth much, the first thing to think about is to buy scarce assets.
Cash flow.
The definition of cash flow actually has two aspects.
The first aspect is the convenience of asset transactions, or liquidity, that is, how quickly it can be cashed out.
This does not involve the rise and fall of asset prices, but simply the cashing out.
Assets with high value but no market are actually overvalued.
Only when the value is cashed out and there is a rush of funds, it is a truly high-quality asset.Thus, the ability to cash out, as a standard for testing cash flow, is extremely important.
On the other hand, there is the cash flow generation capability, similar to rent, dividends, etc., which are long-term stable cash returns.
If the assets you buy can generate wealth continuously every year, month, or day, then their value is very significant.
For example, office buildings, shops, and residences that can be rented out.
For example, stocks that pay dividends every year, and equity in some companies.
For example, annuities, bonds, and financial products that can provide stable returns every year.
These assets that can generate relatively stable cash flows are actually also very high-quality assets.
Do not look down on some assets with low returns, such as government bonds with only 2-3%, but their value lies in stability.
In some special periods, when buying anything loses money, government bonds are also high-quality assets.
3. Major trends.The last category of assets represents the trend of the future.
For example, in the past two years, assets related to technology, including those related to AI, are actually high-quality assets.
The reason they are high-quality assets is that they all conform to the overall trend of the development of the times and the industry.
At different stages of the development of human civilization and the development of socio-economic law, new assets, new industries, and new companies will emerge.
The products of these major trends are very valuable for investment, not only for preservation but also for appreciation.
Under different social conditions, people's needs are different, and the social ideology is also different, which is an opportunity behind it.
Express delivery is an opportunity of the Internet e-commerce era.
Takeout is an opportunity of the era of staying at home and being lazy.
Ride-hailing is an opportunity brought about by the difficulty of travel in large and medium-sized cities.
Various dating and socializing are opportunities to meet the needs of young people to make friends without going out.Some enterprises can be called great enterprises because they have solved the needs of the market, and the needs that are increasing day by day.
Solving the needs represents value, but the form of value and the corresponding investment form are different.
The above three types of assets, no matter how many times they have gone through the bull and bear markets, can be accurately penetrated.
The value brought by high-quality assets is the key to its preservation and appreciation attributes.
Unfortunately, the price of the real high-quality assets nowadays is not cheap.
There are so many funds in the market, which are undervalued and which have the potential for appreciation, have been scanned by large funds.
For ordinary people, to live a good life under the potential economic crisis, it is not enough to simply buy high-quality assets.
For the public, their last trump card is actually the ability to work, that is, the ability to earn money by labor.The stronger one's ability to work, the stronger their ability to earn money, and the less they have to worry about the impact of the economic downturn.
After all, in any era, there is a demand for work, it's just a matter of more or less.
Of course, it would be better to be able to buy relatively "cheap" high-quality assets.
But if one's financial ability is not up to par, it's better not to force it.
To buy a house in Beijing, Shanghai, or Shenzhen, and be in debt for millions, which greatly reduces the quality of life, is definitely not feasible.
Let the capital market solve its own problems, and whether it's assets or not, they all come after life.
Think more about one's ability to earn money, think more about one's ability to cash in assets, and the cash flow output is the most critical.