The '442 Golden Ratio' allocation offers a chance to reduce portfolio volatility and increase returns during market turbulence. This strategy is especially significant in light of the market fluctuations observed in the first half of the year, particularly the impact of the Trump tariff war. Cathay Securities believes that with the globalization of supply chains, future tariff impacts are expected to ease, anticipating that the U.S. will not impose excessively high tariffs, estimating a range of about 10% to 15%, thereby reducing short-term risks.

Moreover, with the Federal Reserve still having room for interest rate cuts, investors are advised to consider entering the U.S. market. If unsure about stock and bond allocation, utilizing the Cathay U.S. Multi-Asset Income Balanced Fund can be a viable option. This fund adopts a '442 Golden Ratio' allocation, with approximately 40-50% invested in U.S. equities and ETFs, covering sectors such as technology, communication, and finance, including shares from leading companies.

Furthermore, the fund manager, Fan Jiang Peiying, underscores that a significant portion of the remaining capital is invested in U.S. investment-grade bonds, allowing for flexible adjustments based on market changes to lower volatility and achieve excess returns.

Amidst high policy uncertainty, the fund slightly reduced its holdings in high-volatility stocks while seeking opportunities for future low-price acquisitions. Fan believes that the outlook for U.S. investments is optimistic, especially as tariff risks gradually decrease, Saudi Arabia's commitment to invest $600 billion in the U.S., and a reduction in recession risks for the U.S. economy. Investors are advised to moderately diversify their asset allocation to mitigate potential risks.

Investment involves risks. Investors should make decisions based on their risk tolerance and take responsibility for the outcomes of their investments.