--- title: "Middle East situation \"the tree wants to be still but the wind does not stop,\" what equity assets should be focused on?" type: "News" locale: "en" url: "https://longbridge.com/en/news/279246040.md" description: "The situation in the Middle East remains tense, leading to a decline in global market risk appetite, with investors focusing on the selection of equity assets. The CNI Value 100 Index has performed outstandingly in a volatile market, with a cumulative increase of 11.1%, as its stock selection logic aligns with market demand: high dividends, high free cash flow, and low valuations. The constituent stocks of this index have benefited from geopolitical conflicts, particularly energy companies, demonstrating their resilience in times of uncertainty" datetime: "2026-03-16T10:29:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279246040.md) - [en](https://longbridge.com/en/news/279246040.md) - [zh-HK](https://longbridge.com/zh-HK/news/279246040.md) --- # Middle East situation "the tree wants to be still but the wind does not stop," what equity assets should be focused on? The recent global market can be aptly described by the phrase "the tree desires calm but the wind does not cease." The situation in the Middle East remains tumultuous, with geopolitical conflicts intensifying, global risk appetite continuously shrinking, and commodities experiencing severe fluctuations. In the A-share market, the rapid rotation of themes makes it hard to grasp, leaving many investors curious: in such chaos, are there equity assets that can both hedge against volatility and earn real profits? The answer is affirmative. Those hard assets that can navigate an independent market trend during counter-cyclical periods have always been those with performance elasticity and safety margins. The value ETF E Fund (159263), which tracks the CNI Value 100 Index, has proven through its actual performance since its listing that it is indeed the most scarce answer in the current market. **1\. Why can the CNI Value 100 Index stand out in this year's volatile market?** Many people's understanding of value investing still lingers on "buying large blue chips and collecting dividends," but the CNI Value 100 has redefined how to play "deep value" in the A-share market with its solid net value curve. What is the core contradiction in the market this year? It is the extreme aversion to "uncertainty" under the competition of existing funds. Speculating on themes fears a one-day trip, chasing growth fears performance falling short of expectations and killing valuations, and buying broad-based indices fears riding the elevator with the index. However, the CNI Value 100 has walked out an independent market trend, accumulating a rise of 11.1% by 2026, a result built on balanced industry exposure rather than betting on specific tracks, which is indeed rare. Data source: Wind, as of March 9, 2026 The reason the CNI Value 100 can achieve a crushing market performance lies in its stock selection logic, which precisely hits the core demand of the current market—high dividends + high free cash flow + low valuations as a three-dimensional stock selection standard, packaging the most "resilient" deep value assets in the A-share market together, ensuring that the selected companies have stable businesses and abundant cash flow. **2\. The more tense the situation in the Middle East, the stronger the logic of the CNI Value 100** With each escalation of geopolitical conflicts, other A-share assets have to "pay military expenses," but this adds fuel to the fire for the constituent stocks of the CNI Value 100, as the tense situation benefits certain industry sectors, which are almost fully covered in this index. Let’s clarify the certain changes that the rising tensions in the Middle East will bring to the global market: First, the supply side of commodities like crude oil and natural gas continues to tighten, and the upward shift of oil prices is almost a certainty, with energy companies having strong profit realization capabilities; Second, traditional shipping routes in the Middle East are obstructed, leading to detours and longer shipping distances, combined with the increased activity in global crude oil trade, creating opportunities in the oil transportation market Third, global risk aversion has surged, with funds migrating from high-valuation, high-volatility growth sectors to low-valuation, high cash flow, high-dividend defensive sectors. Utilities, banks, and other value sectors have become the "reservoir" for capital. The constituent stocks of the CNI Value 100 index are precisely the leading companies in these sectors. The index's industry distribution is highly concentrated in cyclical sectors such as petrochemicals, banking, transportation, utilities, and raw materials, which benefit directly from geopolitical conflicts. The more tense the situation, the stronger the oil prices, and the clearer the profit expectations for these companies; the higher the market's risk aversion, the more willing capital is to give a premium to these low-valuation assets with stable cash flows. This is also the core reason why, against the backdrop of repeated geopolitical conflicts this year, it has been able to perform independently. Data source: Wind, as of March 9, 2026 **Three, not only short-term catalysts, under inflation expectations, CNI Value 100 is also a long-term hard currency that transcends cycles** At this point, some investors may ask: If the situation in the Middle East eases later, will this index lose its momentum? On the contrary, the investment value of CNI Value 100 has never relied solely on short-term geopolitical events for catalysis; its underlying logic is compatible with the macro environment for a long time to come. What is the major trend for China's economy in the future? It is the reasonable rise in prices due to inflation expectations and the profit differentiation during the economic recovery cycle. In such an environment, the advantages of CNI Value 100 will only continue to be amplified. First, in a mild inflation environment, the sectors that benefit the most are upstream resource products, utilities, and transportation, which have pricing power. The prices of these companies' products and services can rise in line with inflation, while their cost side remains relatively stable, allowing profits to consistently outpace inflation, making them recognized as "profit improvement leaders" in the market. In contrast, growth stocks that lack cash flow support and rely on valuation stories may repeatedly face valuation pressure amid inflation and interest rate fluctuations. Second, during a declining interest rate cycle, the cost-effectiveness of high-dividend assets will increase exponentially. Currently, the yields on bank wealth management products and government bonds continue to decline, while the average dividend yield of the constituent stocks in CNI Value 100 is 4.6%, on par with the CSI Dividend Index and higher than other comparable indices. Moreover, these companies' high dividends are not one-time events; they are supported by stable free cash flow and are sustainable. For long-term funds such as insurance, assets that provide "stable dividends every year and long-term profit growth" are irreplaceable core allocations. Data source: Wind, as of March 9, 2026 More importantly, the holding experience of CNI Value 100 is where it resonates most with ordinary investors. There has never been a shortage of varieties in the A-share market that experience short-term surges; what is lacking are assets that ordinary people can hold onto, sleep well with, and make money from in the long term. Historical calculation data shows that buying CNI Value 100 at any time and holding it for 1 year has a profit period ratio of up to 84.9%, and holding it for 2 years has a profit period ratio of 96.5%. The average return for holding it for 1 year can reach 20.8%. Data source: Wind, as of March 9, 2026 History has repeatedly proven that value investing is the strategy that can best navigate bull and bear markets in the A-share market. The long-term performance of CNI Value 100 is not driven by a single market wave but is built on the continuous profit growth and stable dividend returns of its constituent stocks, progressing step by step. For us ordinary investors, the biggest taboo in investing is chasing prices and frequently falling into traps in chaotic situations. Instead of gambling on luck in themes, it is better to grasp the most certain main line at present. **Value ETF E Fund (159263)** is precisely the tool that closely tracks the CNI Value 100 Index, allowing for a one-click investment in the most core deep value assets in the A-share market. In the current context of escalating geopolitical risks and increasing market volatility, Value ETF E Fund (159263) can serve as a "safety cushion" against market fluctuations while also capturing the benefits of the energy cycle and profiting from corporate earnings growth. It is both an offensive and defensive strategy, making it the optimal solution in the short-term chaos and a "ballast stone" that can be held in long-term investments ### Related Stocks - [399371.CN](https://longbridge.com/en/quote/399371.CN.md) - [159263.CN](https://longbridge.com/en/quote/159263.CN.md) ## Related News & Research - [Oil edges lower as traders assess Middle East developments](https://longbridge.com/en/news/286980644.md) - [ZAWYA: Sustainability Forum Middle East to convene high-level roundtable on accelerating energy efficiency in bahrain](https://longbridge.com/en/news/286901878.md) - [OGE Energy elects board of directors at annual meeting | OGE Stock News](https://longbridge.com/en/news/286470549.md) - [Hidden Cost Of Financial Inaction, And How To Break The Cycle - The Decision You Make By Not Deciding](https://longbridge.com/en/news/286786034.md) - [Action Energy Company Shareholders Approve Dividend](https://longbridge.com/en/news/286382752.md)