CICC discusses hedging AI risks and mentions the allocation value of gold

Why it matters to readers

If this assessment is correct, when investors evaluate AI the risks associated with the relevant markets, they may need to observe not only equities markets but also pay attention to the market segmentation brought about by USD and gold’s hedging role.

Beginners can understand “hedging” as allocating assets whose performance may differ from that of the main risks, thereby reducing the extent to which a portfolio is affected by a single risk; however, the original text provides no specific allocation ratio or operating method.