The proverb "good is good for all the shorts" is a summary of the experience of investors in ** investment. Although this is just a proverb, it contains a certain logic and truth. In this article, we will further discuss the meaning of this proverb and explain the principle behind it.
First of all, we need to understand what is negative and positive. Bearish refers to a series of factors that may have a negative impact on the market, such as the decline in corporate performance, policy adjustments, geopolitical risks, etc., which often lead to the deterioration of market sentiment and the intensification of investors' worries and panics, thus causing certain pressure and anxiety on the market. On the contrary, good refers to the factors that have a positive impact on the market, such as good corporate performance, favorable policies, economic recovery, etc., which often drive the market sentiment upwards and bring a certain impetus to the market.
When encountering negative factors, investors tend to fall into panic and worry, and may sell to avoid risk, and transfer funds to relatively safe haven assets or cash, which usually leads to **. However, with the passage of time and the disclosure of information, market participants began to gradually digest the negative factors and gradually adjust their investment decisions. When the bearish factors are fully digested, investors' sentiment and confidence are usually restored, and they start to focus on investment opportunities again.
Next, let's discuss why a full range of bearishness can be a positive reason. First of all, when the bearish factors are digested, there may be a certain amount. Investors will gradually withdraw their funds from safe-haven assets and re-invest them, which will lead to an increase in market supply, which will boost the overall trend. Second, as the bearish factors are digested, market sentiment begins to repair upward. Investors may reassess their views on the sector and begin to re-optimise on potential growth, which will trigger more investment demand, which in turn will drive the rise.
At the same time, when the bearish factors are digested, there may be some undervalued investment opportunities in the market. Investors can observe those markets that are greatly affected by negative factors** or industries, looking for potential investment targets, these undervalued ** may gain more attention and recognition as market sentiment repairs and investors fade risk sentiment, investors can look for potential investment returns in these opportunities.
However, it should be emphasized that the proverb is only a summary of experience and cannot be used to accurately follow the trend. Investment involves the comprehensive impact of various factors, including the macroeconomic environment, policy adjustments, corporate financial reports, etc., these factors will have different impacts on the specific historical background, so investors still need to consider many factors when making investment, and make decisions in combination with their own investment objectives and risk tolerance.
In short, the proverb "the good is good" is a kind of experience summary of investors when observing. When encountering negative factors, investors' sentiment is often affected to a certain extent, and they may also face pressure. However, with the gradual digestion of negative factors, investor sentiment and confidence may be restored, and the market is also expected to appear**. Therefore, when investing**, investors can look for some undervalued investment opportunities after the negative factors have been exhausted, and make appropriate investments in combination with their own investment objectives and risk tolerance.