As early 2026 came, the geopolitical risk became increasingly unpredictable. The US forcibly detained Venezuelan President Maduro, Iran is experiencing nationwide unrest, and tensions across the Taiwan Strait are gradually escalating. These successive events made investment planning extremely difficult. Conservative investors held cash and precious metals, while aggressive investors capitalized on the AI boom by investing in technology stocks. Believers in the "brick-and-mortar economy" are looking to buy at the rock bottom and expect a rebound. Besides asset allocation, three elements including low leverage, minimal risk, and high liquidity are constructed on the fundamental principles of market investment.
For end-users who passionately believe that the property market is about to rebound, a down payment of 40% or more 
is recommended for any transaction to reduce monthly mortgage payments. For investment purposes, a down payment of up to half the transaction price is advisable. Indeed, Investors should not have lofty expectations for the rise of property prices. The probability of a 10% increase within a year is no higher than 20%. If the purpose of buying property is an investment, one should mentally prepare to hold these premises for long-term investment.
If real estate investment is considered to have low liquidity and returns, one should invest in a USD time deposit with a 3.2% annual interest rate. earning 1% higher than the 2.2% of a Hong Kong dollar time deposit. Besides time deposits, precious metal investment has recently become a market focus. Besides hedging, investors were also aware of the price of these metals having a significant 70% increase last year; those hard data gave investors a shot in the arm.
About stock market investment, the Hang Seng Index and Dow Jones Industrial Average were at an elevated level, and those indices are expected to fluctuate at this higher level. Therefore, selling shares to make profits at a peak is the best strategy. Investors should carefully consider their risk tolerance whenever entering and exiting the market. How much they hold should also be carefully planned.
In this volatile market sentiment, regardless of the diverse types of investment, it is crucial to manage position sizing and keep liquidity. In fact, first-tier wealthy property developers continue to liquidate inventories for cash, second-tier wealthy property investors are selling tenanted properties at a discount, and third-tier wealthy property agencies have been keen to talk up the property market to maximize commission income. For the average middle-class person, if anyone feels uneasy, it is better to avoid making deals in a hurry to reduce mistakes. It is safer to enter the market after a genuine rebound is confirmed. It helps to avoid falling into a false rebound trap.
Two years ago, Cheung Kong's The Coast Line launched at a shockingly low price and sold out quickly. Recent transaction records for this property show a total of 11 cases of forfeited deposits; buyers' 10% deposits were forced to give up. In 2023, they bought the properties with full confidence, but today it ended in a complete disaster.
