The Shanghai Composite Index fell 1 82 in the first half of the day, and the high dividend sector co

Mondo Finance Updated on 2024-02-06

Today's two major indexes started like a roller coaster*** The Shanghai Composite Index once bottomed out to 2653 points, and even fell below the low of 2666 last Friday, and the GEM also hit a new low, to 1482 points. Today's trend, on the one hand, is caused by the inertia of market sentiment last week, and on the other hand, because of some negative news from overseas over the weekend, which has brought a lot of impact to the market.

The number of new jobs in the United States in January was strong, reaching 350,000, far exceeding market expectations of 180,000, like a tiger ready to go. This figure not only delayed the Fed's interest rate cut plan, but also disrupted the market's original expectation of a rate cut in March. Now, the Fed won't be able to cut interest rates until May at the earliest. This wave of the U.S. economy is like a wild horse that has escaped the reins, which makes people marvel. Although the market had expected that after the US interest rate hike reached a record high of 5% in '23, the economy would be under tremendous pressure and even a severe recession could occur. But in fact, the economic trend in '23 and '24 continued to exceed expectations. The employment rate has stabilized at a record low, the economic growth rate has remained at a record high, and the capital market has also been rising.

However, the postponement of interest rate cut expectations has left the market's already fragile sentiment on thin ice. It's like a sudden storm that upsets the tranquility of the market. However, there has been a V-shaped reversal in today's intraday session, and the decline has now narrowed significantly compared to the large ** in the morning. This may be a positive sign that the market is gradually adapting to this change and finding a new equilibrium.

In the tranquility of the weekend, Yi Huiman, chairman of the China Securities Regulatory Commission, convened an important party committee meeting. He emphasized the importance of promoting the research and visit of listed companies, determined to effectively solve practical problems and difficulties, and increase support for high-quality listed companies. He made it clear that it is necessary to strictly control the entrance of listed companies and increase the implementation of delisting to comprehensively improve the quality of listed companies.

In order to maintain the fairness and justice of the market, Chairman Yi Huiman called for in-depth investigation of clues of violations of laws and regulations, and resolutely cracked down on major illegal acts such as market manipulation, malicious short-selling, insider trading, and fraudulent issuance in accordance with the law. This undoubtedly sends a clear signal to those who violate the law in the capital market: in the capital market, any violation of laws and regulations will be severely punished.

At the same time, in order to further guide medium and long-term funds into the market, he encouraged and supported various investment institutions to increase their layout in the context of countercyclical. This is a positive sign that the market will usher in more stable funds to support the healthy development of the market.

The current market sentiment is pessimistic and the undertaking force is insufficient. Some institutional funds and quantitative funds passively stop losses due to overfalls, resulting in a situation of more kills and more killings, forming a stampede in the market. However, just as the dawn comes, the market's severe overshoot has pushed the index to a historic low. In particular, the magnitude of the correction in micro-cap stocks is staggering. Although stocks and some fundamentally good ones are relatively good, many varieties with good quality have been mistakenly killed. Finance

Therefore, I suggest that you should seize the opportunity to adjust the ** to the good quality varieties in a timely manner. Such a layout will help to reduce losses in the future. High-quality varieties that are wrongly killed will eventually return to their fair value, while junk stocks may collapse. In this market full of challenges and opportunities, we need to keep a cool head and keen insight, seize the opportunities, and meet the dawn of the future.

Vertex Financial Investment Consultant: Li Zhi

License number: A0380623120005

The above content is for reference only and does not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.

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