Core Viewpoint - The article discusses how to respond to sudden political events and emphasizes the importance of understanding the "pocket-picking game" in investment, where trading can lead to both gains and losses, and highlights the advantages of holding assets without trading [5][26]. Group 1: Understanding the "Pocket-Picking Game" - All major asset classes have long-term returns driven by inflation and interest rates, with prices fluctuating around these central factors [6][12]. - Holding an asset without trading can yield long-term returns from inflation and company profits, while trading can result in additional profits or losses [7][8]. - The market operates as a zero-sum game where the gains of some investors come at the expense of others, illustrating the competitive nature of trading [9][11]. Group 2: Risks of Trading - Engaging in trading introduces the risk of being "picked" by others, as the market consists of both "scissors" (those who profit) and "leeks" (those who lose) [20][22]. - The article suggests that most investors lack the necessary advantages in data volume, quality, and analytical frameworks to succeed in trading against more informed players [24][26]. Group 3: Asset Allocation Strategy - The recommended strategy is to avoid participating in the "pocket-picking game" and instead focus on asset allocation without frequent trading, allowing for rebalancing when necessary [27]. - This approach may not prevent losses during downturns but also avoids the pitfalls of missing out on potential gains [27].