Recently, the life of investors is not easy!
On Friday morning, since opened , the stock market has plummeted, and the intraday index almost fell below the 3,000 mark; in the afternoon, there seemed to be a mysterious force intervening, and a magical increase came, but it was quickly smashed again. By the close, the Shanghai Stock Exchange, Shenzhen Stock Exchange, , ChiNext , and Science and Technology Innovation 50 all fell sharply.
Many people posted barrage saying that they had the urge to go to the rooftop; I looked at the market and saw that more than 4,000 stocks fell, and the rooftop might not have a position.
Shanghai Index dropped from 3600 points at the beginning of the year to 3000 points now, which is about 17%, which does not seem to be very big. However, the magic is that the market index did not fall much, but the stock fell terriblely, especially some white horse stock , which either cut in half or ankle.
html In September, the stock market entered the vicious circle of "white horse stocks line up to sacrifice". Recently, it has been "must kill a big white horse" every day: September 13, WuXi AppTec ; 14, CICC; 15, Sunshine Power ; 16, Oriental Fortune ; 19, Aimek; 20, San'an Optoelectronics ; 21, Mindray Medical ; 22, Pianzihuang; 23, Star Peninsula.
The good news is that the 24th and 25th are weekends. If the market is not opened, investors will finally not have to lose money; the bad news is that late on Friday night, the on the other side of the ocean plummeted again. On the 26th, is it another bowl of noodles?
Many people are puzzled, why are the stock markets trying to kill white horses recently? Why does the better the company's stock price fall more violently? I think the essential reason is the problem of capital flow.
On the one hand, the beautiful country continues to raise interest rates in , causing global capital to accelerate the return, and A shares in will inevitably be affected. When these foreign capital enters A-shares, they will inevitably choose those white horses with good performance, good expectations and good fundamentals to help their stock prices rise; when they leave, these white horses who are the most affected, accelerating their stock prices to fall.
On the other hand, these white horses have experienced big rises before, and most of the stock prices are already high. When large funds reduce their holdings normally or illegally reduce their holdings, they will induce a chain reaction of smashing the market. For example, Shanghai Yingyi, a shareholder of WuXi AppTec, illegally reduced his holdings by 2.9 billion this year and was severely fined 200 million by the China Securities Regulatory Commission. Its stock price has dropped from the highest point of 170 to 69; recently, Buffett reduced its holdings in BYD twice, cashing out nearly 820 million Hong Kong dollars, and BYD suffered a heavy blow in its market value evaporated by more than 120 billion.
The liquidity of funds is too important to the stock market. Without enough people to participate, enough funds enter, and high enough trading volume, the stock market is hard to say "broad".
The biggest problem in the stock market at present is that the transaction volume is too small and the lack of liquidity! When the stock market was booming, the daily trading volume of A-shares was one trillion yuan, but now it has continued to hover at the 600 billion yuan level. With so much decline in trading volume, the stock market will inevitably be shut down. The deeper reason for
is the question of confidence. Against the backdrop of global central banks competing to raise interest rates, everyone's concerns about the economic recession are becoming increasingly strong, and the wave of selling in the financial markets swept the world. Currently, Dow Jones Industrial Average has fallen below 30,000 points, setting a new low in the past two years, and Hang Seng Index has fallen below 18,000 points, setting a new low in the past 10 years.
10 years, in the blink of an eye! The fate of Hong Kong stock is really sad.
I looked at the trading of Hong Kong stocks. The trading volume on Friday was 80.8 billion, only one-third of the high point. The index has fallen from 33,000 points at the high point (2018) to 17,933 points. The turnover rate is surprisingly low, and the turnover rate of Tencent , which ranks first in popularity, is only 0.21%.
Compared with A-shares, Hong Kong stocks are more mature, with a higher proportion of good companies and more popular value investment. Basically, no one cares about Hong Kong stock junk companies. The reason why the market fluctuates more than A-shares is that Hong Kong stocks are more affected by foreign capital. With the continuous interest rate hikes in Beautiful Country, the problem of capital return is more significant, and therefore the liquidity problem is also greater.
So, what is the interest rate hike in Beautiful Country?
First of all, The interest rate hike of the Federal Reserve is not the deposit and loan interest rate, but the interest rate in the interbank lending market, which is called the federal funds rate, which is equivalent to the benchmark interest rate of other interest rates.
After the Federal Reserve raises the interbank lending market interest rate, the cost of borrowing money from the Federal Reserve will increase. In order to digest financing costs, the financing interest rates provided by these financial institutions will also increase. If this continues, the interest rate level of the entire market will rise.
Secondly, The Fed's interest rate hike is to curb inflation. Because interest rate hikes can encourage residents to save more and spend less, and can also curb financing and loans, thereby curbing investment and consumption. When investment and consumption are suppressed, it is conducive to the decline in inflation.
The Federal Reserve insists on hikes because the U.S. inflation remains high, and at the same time, it cannot find other better ways to reduce inflation. It can only use the method of hikes, which is a way to fight against the poison.
The Federal Reserve's interest rate hike will inevitably have a significant impact on the US financial market, and the US stock market is the first to bear the brunt of it. So once the Fed raises interest rates, the US stock market will fall sharply.
So, why does the Fed rate hike have such a big impact on global stock markets? It has been analyzed before, so I will end it.
First of all, it will cause capital to accelerate its return to the beautiful country, and there will be problems with capital liquidity in other markets. For example, Hong Kong stocks have experienced large fluctuations recently. A-shares are relatively less affected, but they also have certain impacts.
Secondly, it will affect investors' confidence in the stock market. With the Federal Reserve hikes interest rates, the US stock market is likely to fall, and once the US stock market falls, other major stock markets around the world are likely to fall. When major global stock markets are falling, it is also difficult for domestic investors to remain optimistic about A-shares.
So, how should we small and medium-sized investors deal with it?
sells at highs and buys at lows. Everyone understands the truth, but in practice, it is difficult for anyone to do it. For example, after the outbreak of the epidemic, the economy suffered a huge blow. Who would have expected a big market in the stock market? For example, this year, who would have expected the stock market to go so far? Let’s take a step back, even if you can expect, how many people dare to use real money to practice it? Most of the time, small and medium-sized investors lose themselves in "chasing the rise and sell the fall".
There is a famous saying in the stock market: There are no stocks that will fall forever, and there are no stocks that will rise forever. But this year, there are a little more stocks that are falling continuously.
I looked at it in the stock bar, and more and more netizens have been showing off their losses recently. Some people complained: "The income of several hundred yuan per day is a loss of several thousand yuan." Some people complained: "On weekdays, they are reluctant to eat a tea egg, but they spend money like soil in the stock market."
More people cursed at the management of their investment company . I looked at the stock bar of my company. There were also various curses in it, scolding the major shareholders for reducing their holdings, scolding the company for using the money of shareholders, and scolding the fixed increase... Good news and bad news, it is no wonder that in addition to cursing a few words, how can those investors who have lost investments relieve their anger?
The stock market is very different from the real estate market. At least the real estate market still has a basic need. The stock market is purely an investment market, and you are truly responsible for your own profits and losses. When investing in the real estate market, there is at least a house to base it. Investing in the stock market is a string of numbers. When it rises, it feels like life is winning, and when it falls, no trace will be left for you.
This is the risk of the stock market and the charm of the stock market, attracting countless people to continue.
So, how should we operate in the stock market today?
I think you only need to keep a close eye on one factor - transaction volume. This is actually in line with the real estate market. If the trading volume increases, the market is likely to be not far away. If the trading volume does not increase, the market will be difficult to be prosperous.
However, the specific stocks are very different. You still need to analyze the specific problems of .
I personally have a negative attitude towards the stock market in the short term, because the beautiful country opposite has expected to continue to raise interest rates in the next one or two years. In addition, the repeated epidemics and wars of black swan events occur frequently, which makes people feel uneasy.
Dear netizens, have you lost money this year? What do you think about the future trend of the stock market? Welcome to leave a message for discussion.
