Liquidity pressure disrupts the market, institutions suggest balanced allocation in the volatility.

The latest non-farm payroll data in the United States has once again exceeded expectations, causing a huge earthquake in global equity markets, with adjustments in the technology sector particularly noticeable. This week, the highly anticipated U.S. CPI data for May will be released, and the European Central Bank will also announce its latest interest rate decision, potentially becoming the first major economy central bank to resume rate hikes this year, signaling a tightening of market liquidity. In the industry's view, in an environment of tightening liquidity, one should be wary of the short-term style reversal brought about by high market crowding, and while participating moderately in the technology sector, also pay attention to small and mid-cap stocks and cyclical sectors. As for A-shares, the impact of overseas risks is more short-term in nature, so it is recommended for investors to have a balanced portfolio, with sectors such as utilities and banks expected to receive attention.