Trump's "victory declaration" does not gain traction, experts urge to reduce positions and take a break, Hang Seng Index drops to a certain level to buy in

U.S. President Donald Trump delivered a national address this morning at the White House, announcing that the U.S. military achieved a "quick and decisive victory" in Iran, while also forecasting heavy strikes against Iran in the next two to three weeks. The market reacted to Trump's unilateral declaration of victory with skepticism, as U.S. stock futures for the Dow Jones Industrial Average fell by 400 points, and Brent crude oil rose by 6% in "celebration." Stock markets in the Asia-Pacific region generally declined, with Hong Kong stocks opening down 39 points and the decline expanding to nearly 400 points, falling below the 25,000-point mark. Financial experts believe that the U.S.-Iran conflict will remain in a stalemate, advising to reduce positions and increase cash holdings before the Easter holiday. Related articles: Trump’s anti-climax, U.S. stock futures down over 1%, Hong Kong stocks drop 277 points in half a day, Alibaba and Xiaomi face selling pressure, Geely rises 6% against the trend｜Hong Kong stock market opens Liang Jiewen: Stalemate in the conflict, Hong Kong stocks to remain weak in April Liang Jiewen, investment manager at Hong Kong High Securities, believes that the U.S.-Iran conflict will continue in a stalemate and will not be resolved quickly, while Trump's attitude is expected to remain inconsistent. "In fact, we have seen this over the past week or two; when the market falls, he retreats, and when the market rises, he takes a hard stance. The market overall feels ambiguous," he said, but the market also believes that the chances of the conflict worsening are low. He expects that Hong Kong stocks will remain weak in April, partly because the war will not end in the short term, and many blue-chip stocks such as Tencent (700), Alibaba (9988), and Pop Mart (9992) have not performed well after their earnings reports. Buy only at 24,000 points; domestic banks are defensive with high interest rates He advises investors to maintain a strategy of buying on dips, suggesting to buy only when close to the 24,000-point level. "Buy during significant drops; right now, the market isn't falling much, and there's not much panic. The earnings of Hong Kong blue-chip stocks aren't particularly impressive, and everyone is worried about high oil prices and interest rate hikes before the end of the year." He admits that with the conflict still in a stalemate, it is advisable to reduce positions or increase cash holdings before the Easter holiday. If the market adjusts to near 24,000 points, Liang Jiewen recommends investors choose domestic bank stocks, as this sector has remained relatively strong this year. He believes that it can still outperform in the first half of the year, as domestic banks are still undervalued, with dividend yields maintained at around 5% to 6%, which remains attractive and offers a certain level of defensiveness. Hung Hom Screw: Stocks with pricing power are recommended Additionally, "financial KOL" Hung Hom Screw expressed in an interview with Sing Tao Daily that he still believes the U.S.-Iran war is not something that can be resolved in the short term. Even if the conflict ends, the oil, fertilizer, and natural gas facilities in the Middle East have been damaged and will take time to recover. He believes that oil prices will continue to remain at a high level. With expectations of interest rate cuts slowing down, investors can continue to hold gold, oil stocks, and some stocks with pricing power, such as Hong Kong Exchanges and Clearing (388) and McDonald's (MCD), to cope with inflation or even stagflation. Related articles: Japanese yen continues to fall to 4.91, UBS warns that if oil supply continues to be disrupted, historical lows may be seen by the end of the year