Recently, I've seen many discussions about an extreme hypothetical scenario: if the global situation truly spirals out of control, can traditional investment strategies still be reliable? Honestly, this topic sounds heavy, but from an asset allocation perspective, it's definitely worth considering.

My observation is that during wartime, what preserves value best ultimately depends on assets that don't rely on governments or financial systems. Gold is a classic example—thousands of years as a hard currency, maintaining purchasing power in any crisis. Silver, though more volatile, follows the same logic. Besides precious metals, hard currencies are also crucial—currencies like the US dollar and Swiss franc, which are globally recognized, tend to appreciate during turmoil. However, war can cause sharp exchange rate fluctuations, so holding multiple currencies for diversification is more prudent.

Looking further, physical resources become even more practical. Energy and food demand only increase during war, and prices for oil, natural gas, and agricultural products often soar. Agricultural land is also valuable—especially self-sufficient land—since in supply chain collapse scenarios, its value can double. That’s why some people choose to stockpile physical supplies—food, fuel, medical supplies—because in extreme situations where paper money fails, these items could be worth more than cash.

On the financial instruments front, things get more complex. Government bonds from neutral countries seem safe, but their safety depends on whether the issuing country can truly remain neutral. Defensive stocks—such as defense contractors and essential consumer goods—are indeed favored during wartime; defense companies get large orders, and food and medical companies remain stable due to necessity. As for cryptocurrencies, Bitcoin claims to be a “borderless hedge asset,” theoretically outside government control, but during war, network and power infrastructure might collapse—this is a real concern. Cryptocurrencies are inherently volatile, and in extreme situations, their performance can be unpredictable.

Ultimately, what preserves value during war is diversification. My advice is not to put all your chips into a single asset class. Hard currencies, precious metals, energy commodities, agricultural resources, defensive stocks, and some cryptocurrencies—plus international diversification—are key. Countries like Switzerland and Liechtenstein, which have historically maintained neutrality, are often top choices. Land and real estate should also be considered, but focus on stable regions—neutral zones in developed countries tend to be safer.

Finally, physical supplies might be more effective than any financial instrument in extreme scenarios. When markets collapse and paper money becomes worthless, things you can eat and use are true wealth. So, if you’re preparing for the worst, a diversified portfolio of gold, cash, physical assets, land, and essential goods—spread across multiple countries—provides a safety net no matter what happens.