CICC: We recommend increasing your allocation to stocks and gold on dips to hedge against inflation risks.
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TL;DR
CICC predicts potential US inflation spikes in late 2025-2026, which could slow Fed rate cuts and tighten global liquidity, increasing asset uncertainty. They advise boosting commodity allocations and buying dips in stocks, gold, and US Treasury bonds to hedge risks.
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CICCinflation hedgestock allocationgold investmentUS Treasury bonds
According to Mars Finance, citing Jinshi, CICC predicts that US inflation will see compensatory increases in the CPI data for December 2025, January 2026, and April 2026. If US inflation is strong in the near term, it may lead the Federal Reserve to slow the pace of interest rate cuts, resulting in a marginal tightening of global liquidity and potentially increasing uncertainty across major asset classes both domestically and internationally. CICC recommends increasing allocations to commodities to hedge risks and buying on dips in stocks, gold, and US Treasury bonds.