2026-01-10 12:27:27

I just realized a truth recently: true investment masters are not playing a one-way money-making game.

Looking at the current situation—central banks holding cash reserves to prevent an economic recession, but on the other side, what is the extreme? Crazy liquidity release, leading to inflation. We are now living in this latter part.

Have you noticed that gold prices are hitting new highs, and the gold-to-oil ratio is approaching historical ceilings? This is no coincidence. Using only 3% of capital to allocate to commodities is essentially buying inflation insurance—it's not surprising if oil prices surge dramatically, and a continued rise in gold is also within expectations.

This is the real dual-way thinking: holding cash during an economic downturn is a trump card, while during liquidity floods, commodities become your fortress. Winning in both scenarios—that's what professional investors' game rules are all about.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
10
Repost
Share

Comment

0/400

LiquidationWatcher

· 8h ago

The idea of hedging on both sides sounds good, but is 3% really enough? If this round of inflation really erupts... --- Gold hits a new high again, I really want to see how far this wave can go --- Calling cash the trump card is a bit much, you need to consider the speed of cash depreciation --- The gold-oil ratio is approaching the ceiling, which is indeed worth paying attention to, but what about the risks? Only talking about returns doesn't seem very honest --- Allocating 3% to commodities? It still depends on individual risk tolerance; not everyone can play this game --- Can win both ways? There's no such good thing in the world, and no one can predict when the reversal will happen

View OriginalReply0

SelfMadeRuggee

· 01-11 13:08

There's nothing wrong with that, but what really hits home is that most people simply can't do it. 3% allocation to commodities sounds simple, but when it comes to cutting losses, who isn't panicked? I've seen a bunch of people shouting about hedging, only to throw everything in during a dip.

View OriginalReply0

ApeWithAPlan

· 01-11 07:46

3% allocation to commodities? Bro, your approach is way too conservative. The dual betting strategy has been heard countless times, but the problem is most people simply can't execute it. The real issue lies in the switching costs between cash and commodities. Have you calculated the slippage? When gold hit new highs, how much is it now? It's easy to say, but in practice, there are a bunch of pitfalls. Yeah, it sounds like a smart idea, but when the bear market hits, everything becomes trash. That's why 99% of people lose money. Behind simple logic is a hell of a lot of time and mindset challenges. I believe in liquidity flooding, but when oil prices surge, can you really hold on? It sounds like a textbook, but in actual trading, you'll find the market doesn't play by the rules.

View OriginalReply0

NFTFreezer

· 01-11 02:54

Gold hits a new high again, we should seriously consider allocation --- Dual-thinking approach is quite correct, but the problem is most people simply don't have that discipline --- I'm thinking that the 3% allocation to commodities might still be too low as a safety margin --- Inflation is coming, cash depreciation, staying still really isn't an option --- Gold and oil ratio, most people simply can't understand this stuff, retail investors are just being cut off --- Sounds very professional, but when it comes to execution, everyone damn well gets caught up in the details --- Can you win both ways? Don't be funny, most people lose even more in the opposite direction --- How long can the central bank keep flooding the market? That's the real key --- There's some truth to it, but the premise is having the principal, bro

View OriginalReply0

LightningWallet

· 01-10 12:57

That's right, the 3% allocation to commodities is indeed a brilliant move. That's right, the 3% allocation to commodities is indeed a brilliant move. Bidirectional thinking isn't mysticism; it's just the seesaw between cash and goods. The gold-oil ratio really deserves attention. These days, without hedging, you basically can't do proper investing.

View OriginalReply0

gas_fee_therapist

· 01-10 12:52

To be honest, I believe in this dual-thinking approach, but a 3% allocation to commodities? That's too conservative, bro.

View OriginalReply0

LiquidationWatcher

· 01-10 12:47

The 3% allocation to commodities is a move I've been making for a while; it depends on how the central bank decides to loosen monetary policy next.

View OriginalReply0

AllInDaddy

· 01-10 12:38

Is 3% really enough? I've already gone for 5%.

View OriginalReply0

BetterLuckyThanSmart

· 01-10 12:30

Ha, you're right, only by fighting on both sides can it work. --- 3% allocation to bulk assets is indeed brilliant. I've been thinking about this too. --- A dual-winning mindset—that's the true logic of making money. --- Right now, both cash and commodities need to be held. Who knows what the next move will be? --- Honestly, the oil and gold data really can't hold up anymore; some defense is needed. --- I just want to ask, is there really anyone who can profit from both economic recession and prosperity? --- This way of thinking is indeed top-tier, but executing it is another matter altogether, ha. --- The fortress theory is good; it feels like betting on the central bank's next move.

View OriginalReply0

BearMarketSurvivor

· 01-10 12:28

3% allocation to commodities? I've been doing that for a long time. Gold and oil & gas are truly lifesavers in the inflation era.

View OriginalReply0