Recently, Allianz Investment's Gregor Hirt stated that as the market seeks clear guidance on the policies of the Trump administration, interest rate trends, and the economic outlook for the US and China, a diversified asset allocation strategy can help address future uncertainties. Building a broad and diversified investment portfolio, including assets such as gold, private market or catastrophe bonds, and maintaining investments during market volatility, can help mitigate risks and seize opportunities. Gregor Hirt is optimistic about some assets in the current environment, such as US small-cap stocks, as they are attractively valued and benefit from fiscal policy support; at the same time, the Japanese yen is becoming more attractive due to its safe-haven characteristics; additionally, China offers long-term opportunities in areas such as artificial intelligence and big data. Can the US economy sustain growth? Gregor Hirt expects 2025 to start with positive momentum for risk assets, supported by strong US corporate earnings growth and declining interest rates, with ongoing stable US economic conditions. As 2025 progresses, Gregor Hirt states that attention will be focused on whether the US economy can meet its expectations for a "soft landing," gradually slowing inflation and avoiding a recession. Another possibility is faster growth accompanied by higher inflation. However, there may also be more challenging scenarios, such as a sharp economic slowdown or recession. Gregor Hirt believes that due to strong US economic growth and support for Trump's "Make America Great Again" agenda, the performance of US stocks may exceed that of international markets. However, recognizing the existence of downside risks, such as the sharp decline in US tech stocks at the end of January due to the launch of a new artificial intelligence product by China's startup DeepSeek. This event underscores the importance of adopting equal-weighted investment portfolios and avoiding overconcentration in a few large stocks. In a diversified asset portfolio, Gregor Hirt prefers US small-cap stocks for their attractive valuations and fiscal policy support. He remains optimistic about the broad technology sector, as the Trump administration may reduce antitrust measures. Additionally, another stock choice is US banks instead of European banks, as they have greater potential for development under potential deregulation. Can Trump's policies be fulfilled? According to Gregor Hirt, the policies of the new US president may have a significant impact on the market. Investors will closely monitor the implementation of Trump's campaign promises. Currently, Gregor Hirt has seen some important policy announcements from the new government, but there is still uncertainty surrounding key parts of many policy agendas. Some of Trump's plans may be contradictory. For example, tax cuts, deregulation, and supportive fiscal policies should boost the stock market, but reducing immigration may cut labor supply, thereby pushing up wages and lowering corporate profits. Trump's new protectionist policies (such as tax cuts and bilateral trade agreements) may disrupt global trade and supply chains, reducing productivity. Furthermore, if we consider his recent strong rhetoric towards Mexico, Greenland, Canada, and Panama, his foreign policy style may exacerbate geopolitical risks. The common denominator of these policies may be rising future inflation, although this may not necessarily be a problem for risk assets, unless inflation gets out of control. Will interest rate paths further differentiate? How the Federal Reserve responds to an overheating US economy will be a key factor. The bond market has already priced in the potential for some economic acceleration and expectations of the Fed reducing its rate cuts. In recent months, US bond yields have risen significantly, reducing the risk of further corrections. If the Fed's monetary policy path deviates, other central banks may have to decouple from the US. It is possible to see the Fed taking a more hawkish stance, even pausing or raising rates, while the European Central Bank remains more dovish, continuing to cut rates. Despite the decrease in European inflation, the ECB may have to take action due to the upcoming German elections and potential political instability in France. If inflation pressures reemerge, the US Treasury market may experience more volatility, as market participants may believe the Fed will delay rate cuts. Although Gregor Hirt does not see this as a baseline scenario, he will closely monitor the demand for long-term US Treasuries. The differentiation in monetary policy may also bring about volatility in the foreign exchange market. Since the US election, the US dollar has appreciated significantly. With the introduction of Trump's trade policies, exchange rate fluctuations are expected to increase. With the Bank of Japan intending to further raise interest rates and the yen's reputation as a safe-haven asset, the attractiveness of the yen has increased. In summary, although future returns may not be as bright as the past 12 to 18 months, Gregor Hirt remains confident about 2025. At the same time, he is prepared to flexibly adjust the investment portfolio as geopolitical and economic conditions change. Gregor Hirt suggests investors can follow two principles to address the uncertainties that may arise in 2025: consider a broader and more diversified allocation, navigate through volatility, and stick to investment principles.