End of Bull Market - Thoughts on the Crypto, Web3, and Digital Currency Exchange

During the early stage of a bear market and the late stage of a bull market,

the hedging capabilities of these three types of ETFs each have their own characteristics:

Convertible Bond ETF

• Disadvantages: During the early stage of a bear market and the late stage of a bull market,

stock market fluctuations can significantly impact convertible bonds.

Although convertible bonds have certain debt characteristics,

they also possess equity-like features.

When the stock market declines,

the price of convertible bonds may also drop sharply,

making it difficult to preserve value.

Government Bond ETF

• Advantages: Government bond ETFs mainly track government bond indices,

offering higher safety.

In periods of economic instability,

government bonds are often seen as safe havens,

their prices remain relatively stable,

and returns are more reliable,

which can help preserve value to some extent.

• Disadvantages: Lower yields,

may struggle to fully counteract higher inflation.

Gold ETF

• Advantages: Gold has natural hedging properties.

When market risks increase,

and economic conditions are uncertain,

investors tend to turn to gold.

Gold ETFs track gold prices,

during the early stage of a bear market and the late stage of a bull market,

when other asset prices fall,

gold prices may rise,

thus achieving value preservation or even appreciation.

• Disadvantages: Gold price fluctuations are also quite frequent,

although it performs well during crises,

it cannot guarantee stable value preservation in all situations.

Overall,

during the early stage of a bear market and the late stage of a bull market,

government bond ETFs and gold ETFs are more likely to serve as effective hedges.

However, the specific choice still depends on individual risk tolerance,

investment goals, and market judgment.

If you prioritize safety and stability,

government bond ETFs may be a better choice; if you seek higher returns during crises

and can tolerate some price volatility,

gold ETFs might be more suitable.

Meanwhile, the hedging ability of convertible bond ETFs during this period is relatively weaker.

**$XAUT **$1INCH **$BAL **