Core Viewpoint - The current U.S. tariff war is an attempt to address the structural contradictions within the U.S. debt-dollar system, which is an evolution of the "Triffin Dilemma" [2][5] Summary by Sections U.S. Tariff War Reasons - The tariff war is initiated to tackle the unsustainable fiscal situation caused by trade deficits, aiming to resolve the inherent contradictions of the U.S. debt-dollar system [2] - The U.S. has imposed tariffs on various imports, including a 25% tariff on imported cars and a 30% tariff on goods valued under $800 [1] Tariff Calculation Issues - The U.S. tariff calculation method is flawed, using a formula that overestimates the necessary tariff rates by about double [3][4] - The formula's assumptions regarding price elasticity of demand and supply are inaccurate, leading to potential miscalculations in expected tariff impacts [3][4] Economic Impact of Tariffs - The tariff increases are expected to raise domestic prices, with an average cost increase of $2,700 per household and a potential rise in core inflation by 1.7% to 2.1% [7] - The tariff war is likely to reduce bilateral trade and weaken the dollar's status as a reserve currency, as evidenced by rising U.S. debt yields and a declining dollar index [5][7] Recommendations for Response - The company suggests increasing macroeconomic countermeasures, including fiscal and monetary policies to mitigate the impact of tariffs [9][10] - Emphasis on enhancing consumer income and building a robust domestic demand market is recommended to counteract the effects of the tariff war [10] - The company advocates for further innovation support to maintain a competitive edge in global supply chains, particularly in high-tech and emerging industries [11]

Core Insights - Over 630 "fixed income +" products have reached new net asset value highs this year, with a net value growth rate exceeding 10% for some products [1][2] - The "fixed income +" strategy is becoming more refined due to increased market volatility and challenges in asset allocation [1][4] Performance of "Fixed Income +" Products - As of April 25, over 60% of "fixed income +" products have positive year-to-date net value growth rates, with some funds like FuGuo JiuLi Stable Allocation A achieving a growth rate of 10.55% [2] - The overall performance of "fixed income +" products is attributed to the favorable performance of convertible bonds and bonds, with the China Convertible Bond Index recording a return of 1.67% this year [2][3] Market Conditions and Challenges - The rapid decline in bond yields has led to a net value increase for fixed income products, while equity markets face risks due to tariff policies [3] - Increased asset volatility has made timing and asset switching more challenging, necessitating a more precise approach to the "fixed income +" strategy [4] Investment Strategy Adjustments - Investment strategies are shifting towards more diversified and tactical approaches, focusing on low-volatility assets and adjusting allocations based on market conditions [4][5] - Fund managers are emphasizing the importance of macro hedging and risk parity strategies to achieve stable long-term returns in uncertain market environments [5] Focus Areas for Investment - In the current market, fund managers suggest focusing on structural opportunities in AI technology, new consumption, and value dividend stocks [5][6] - Fixed income investments should prioritize government bonds, local government bonds, and policy financial bonds for stable returns, while also considering convertible bonds for their dual characteristics [6]