Everything is a cycle, and every round of bull market is the fulfillment of the cycle, whether it is the industry, or even the index is the process of being sideways, peaking, sideways, and flat.
Even if 2635 points is the lowest point in the market, it does not mean that ** can be simply profitable, and there will still be repeated bottoming in the future.
Every bull run is a fulfillment of the cycle
Each round of bull market is the realization of the industry cycle, the last round of the bull market is the realization of consumption, new energy, semiconductors and other performance, the industry in the downturn when the layout, in the high boom when the exit.
Most people don't have the logic of investing on the left side, they will be in the market for a long time, the performance will be cashed in before chasing the high entry, seeing that the price-earnings ratio is very low, they think it is undervalued, but they don't know that after the performance reaches the ceiling, it may be downhill, and the stock price will follow.
Whether it is cyclical stocks such as liquor, new energy, nonferrous metals, chemicals, or other industries, there is a high probability that this logic is the fulfillment of the cycle.
What are the objective laws? That is, when the industry reaches a high boom period, there will be many players entering across borders, expanding production capacity, followed by overcapacity or industry involution, and finally survival of the fittest.
The first or cashing process of the stock price is a cycle, lurking when the industry enters the recovery expectation, leaving the market when the industry performance is realized, and the person who selects the reverse is the real value investor in the market.
In 2024, will the GEM be advanced**?
In 2019, the performance of liquor, new energy, semiconductors, etc., as well as the rapid growth of performance in all walks of life, because housing prices have been in a row for many years.
There is a very strange thing, the performance cycle of listed companies is more or less closely related to housing prices, January 2019 is also this kind of smashing**, the front fell for a whole year, continued at the beginning of the year**, and then retaliated**, most people thought that **reversed, but it chose to build the bottom.
In that round, the performance of the GEM market was even more eye-catching, with new energy, semiconductors, medical care, etc. rapidly, with small and medium-sized enterprises, and heavyweight stocks pressed the index.
Not surprisingly, the rhythm of 2024 will be the same, this year's focus is not on the Shanghai Composite Index, but on the expectations of the Growth Enterprise Market (GEM) to fulfill the expectations in advance.
The funds lurking are not weighted blue chips, but thousands of small and medium-cap stocks, which will be significantly larger, so that there are profit margins, 100% of heavyweight stocks are difficult, and small and medium-sized stocks can be 1000%.
Final summary
No fear of adjustment, this position is the historical bottom area, most people will choose to leave the market, continuous losses are the biggest negative for the mood, and the continuous ** is the biggest positive for the mood.
Most people participate in **, not relying on their own logic and trading strategies, but their own emotions and other people's logic, every day want to copy homework, others are good at things do not mean that it is suitable for you.
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Investment is risky, and you need to be cautious when entering the market!