Recently, we have been in constant communication with you to warn you of the risk that the market may recalibrate. For the next stage of investment, we recommend being conservative and focusing on low valuations with low risk characteristics and stable cash flows.
1: The current market environment.
At present, currency holders are conservative, and liquidity may be tighter towards the end of the year due to operating and income issues. The willingness to participate in risk is low, and the market has not yet been equipped to enter the incremental game.
2: Investor sentiment.
Investors with an optimistic view are unable to express their optimistic expectations through adjustments due to high ** and low debt. This means that the direction of the market and the movement of the style may depend on the optimists who speculate on the theme at this stage.
3: Market Trends and Risks.
If the status quo continues, there is a lack of change in policy expectations, the economy enters the traditional off-season, industry and industry highlights decrease, and optimistic expectations cannot be fulfilled, then the expectations of currency holders may remain stable, but the number of optimists will decrease, and the willingness to trade will decrease. The expected exchange ability of small-cap theme stocks has weakened, and it is necessary to be wary of the end of small-cap **. This change is different from the traditional spring restlessness. A rapid market correction may be technical**, but the height is likely to be limited until policy stimulus triggers a substantial change.
4: Investment advice.
Until there are policies that can move people's hearts, we recommend investors to be conservative. Diversify your investment portfolio, considering low-valuation, stable cash flow** (e.g., low-volatility dividends, resources, cost-effective consumption) or fixed income assets with low risk characteristics.
In the process of investment, please be sure to pay attention to risk control and operate cautiously.
Note: The data and opinions in this article are provided by the Guojun Strategy team and are for reference only.
A shares