Recently, the A**field continued**, and the "2900" defense battle was launched. However, the gaming sector has bucked the trend and become a bright spot in the market. Can the gaming sector sustain its strong momentum?How to lay out the current **?
On the whole, A-shares have been very bad recently, and it can even be said that A-shares have been bearish for two or three years. In the face of the bear market**, my personal investment strategy is: long-termism, cutting the leader in half, two highs and two lows, and combining long and short.
The two highs are high growth and high elasticity, and the two lows are low valuation and low market capitalization. Use dynamic P/E ratios as a ruler and refer to other valuation standards to build your own portfolio.
Some people ask: why is high elasticity important?
Elasticity is the common name of volatility, after choosing a good combination, which one will do the band?Which one can be re-positioned?Volatility is an important indicator. Mr. Dow, the founder of the Dow Jones index, used the sea as a metaphor for the sea: trends are like tides, cycles are like waves, and human intervention is often fleeting waves.
The process of grinding the bottom of the bear market is like a wave washing the shore, and the presence of a wave indicates that it has reached the bottom;Where you can't see the waves, the water is unfathomable, and the risk is high. It is also a high-growth and low-valuation **, with high volatility and low risk, and there are opportunities for swing operations, so why not?
In addition, the volatility of the lower market capitalization** itself is high, and it is a combination of long and short investment targets. Increased volatility is also often the starting point for this long-term.
Of course, among the "two highs and two lows", high growth and low valuation are the first nature;In contrast, high elasticity and low market cap are the reference indicators. In other words, we value high elasticity on the premise of the texture of the company and the plate itself. The company has to have a lot of potential and it has to be cheap, so that its high elasticity is worth paying attention to.
* The more experienced people are, the more they like volatility, which is the difference in risk appetite in human nature. Especially in a bear market, the stock price fluctuations in the bottom range are usually dominated by emotional fluctuations, and high-quality ** with high elasticity is a better investment target.
I am optimistic about the highly elastic sector, and I am also willing to allocate a part of the highly elastic performance in the portfolio. The policy bottom is sharp and immediate, but the market bottom is round, and it takes several times in the bear market to grind out the bottom. In the process of grinding the bottom, high elasticity** can help the portfolio reap excess returns.
In my opinion, the game sector is a high-quality investment target that meets the "two highs and two lows".
The gaming sector is undoubtedly a highly resilient sector. In the first half of the year, it triumphed all the way and topped the market, and then ushered in a huge drawdown. The main reason for the retracement is that the market style is switched between high and low, and the superimposed plate has a large increase in the early stage, and there is a need for adjustmentThe performance and operating data of some AI products are lower than expected, which will have a certain impact on the performance of game companies and investor confidence.
What do you think of the gaming sector?I think it has to be based on long-term logic, even though it still exists in the short term.
On the one hand, artificial intelligence is the "potential kinetic energy" of the gaming sector. With the continuous advancement and application of AI technology, we have reason to expect the gaming sector to continue to shine in the future. The investment boom in the TMT sector is inseparable from the rapid iteration of artificial intelligence, and the game sector is one of the important landing scenarios for artificial intelligence applications. According to the August 2023 Game Industry Report released by Gamma Data, the actual sales revenue of China's game market is 2922.6 billion yuan, up 215%, up 4608%, the year-on-year growth rate expanded again.
Imagine a future where smart NPCs can have deep conversations with you, game scenes can automatically change based on your behavior and preferences, and you can even easily create your own game content with the help of AI tools. All of this could become a reality thanks to the development of AI.
On the other hand, innovation and development within the gaming industry, especially the launch of certain popular games, have had a positive impact on the sector as a whole. At the same time, micro-innovation areas such as mini-games and micro-short dramas are expanding the cultural consumer base. These lightweight forms of content have attracted more users and brought potential increments to the cultural content industry.
In terms of performance, driven by the improvement of industrial policies, the stable distribution of game version numbers, and the continuous innovation of AI technology, the overall performance of the game industry this year has also maintained a relatively strong growth.
Overall, the gaming industry, as a key component of the digital economy, is experiencing unprecedented opportunities and challenges. The widespread application of AI technology will bring new growth points to the gaming industry. Although the gaming sector has gone through a period of correction at the moment, the industry's valuation and earnings repair is not yet over.