The number of countries reaching a 52-week high in the MSCI All Country World Index (ACWI) recently has already reached 47, setting a new record. At first glance, it indeed seems like the global stock market has entered a bull market phase.

But upon closer reflection, this is more likely the result of collective actions by global central banks. The liquidity releases by various central banks have become an ongoing process rather than an expectation.

Looking back over the past two or three years, I have been emphasizing that Chinese assets are severely undervalued, and this judgment has gradually been confirmed. What I want to say next is that, as global central banks continue to inject liquidity, asset allocation strategies should also be adjusted accordingly.

The suggestion is this: prioritize holding high-quality assets with real value support, and even moderately allocate to debt assets, but avoid hoarding too much cash. In a liquidity-rich environment, the purchasing power of cash will be continuously eroded. Time favors the holder; the key is to hold the right things.