Yesterday, the pharmaceutical and liquor sectors of in A-share market rose sharply, and the market experienced a long-lost general increase. Especially many pharmaceutical stocks have seen huge daily limit increases. Many investors can’t help but ask: What’s going on in the market?
Let us pull the time back to more than 4 months ago. I published the article "A shares has unprecedented positive news" on May 11 this year! Has the market bottomed out? 》 clearly pointed out that investors were blind and stupid to short at at that time. Note: The Shanghai Composite Index on May 10 is 3036 points!
That is to say, Shanghai Stock Exchange 3000 points is a position that management attaches great importance to. At that time, the market management spoke on the news broadcast unprecedentedly to express their optimism about my country's A-share market. At that time, A-share investors also agreed that the Shanghai Stock Exchange 3,000 points was the policy bottom for A-shares.
Time interval is only 5 months, and many investors in A-shares panic again. The "policy bottom" 5 months ago was left behind by them, and replaced by them constantly selling or even cutting their losses. There is a joke that says, "The memory of fish is only 7 seconds." The reality is that many investors in A-shares may have less than 5 months of memory.
A few days ago, the Shanghai Composite Index fell to 3051 points, only 15 points higher than the policy bottom of 3036 points on May 10!
In fact, many sectors have fallen below the last low. Sure enough, the management took action again! People's Bank of China the night before yesterday suddenly published an article titled "Flood control and resolving financial risks and improving the long-term mechanism for financial stability", which proposed the content of the financial stability guarantee fund used to resolve and stabilize financial risks. The central bank announced its decision to raise the foreign exchange risk reserve ratio of forward foreign exchange sales business from 0 to 20% from Wednesday!
This shows the determination of the national financial management to stabilize the financial market. measures to prevent major financial risks have begun to be implemented. However, many investors in our A-shares have ignored the stability maintenance signals sent by the financial management in recent months, and have done stupid things to blindly cut off their losses at the bottom in panic, and mocked people like me who are firmly bullish here. Sure enough, yesterday's market conducted a strong education on their bearish behavior. A-shares rose sharply across the board, and , GEM, rose by more than 2%!
The reason for the strong rise in the A-share market is not only because of the management's maintenance of the financial system, but more importantly, many sectors of A-shares themselves have seriously undervalued. is very prone to strong rebound when the market is seriously oversold . In my article "Several Investment Opportunities in A-shares" that I wrote last week, clearly pointed out that there are greater investment opportunities in liquor, medicine, airports and other sectors, and said that many sectors in the A-share market have greater investment opportunities.
I said that, and I did the same. I started to increase my position last week. For details, please see "Strike to increase my position again this week! 》Increasing the holdings of consumer funds once, 2 times, and 3 times, 3 times. See the figure below
I am talking about these today not to show how correct my investment judgment is. I'm already past the age of loving to show off. Make money steadily and have a happy and healthy old age is the most important thing.
I am talking about these to illustrate how important it is to "when everyone is afraid, I am greedy". Selling stocks around 3,000 points is definitely a wrong and regrettable investment behavior.
The outbreak of the pharmaceutical sector mainly stems from the fact that the pharmaceutical sector fell too much in the early stage. Secondly, it is because the recent "centralized procurement" has begun to show signs of "moderation". This exceeded market expectations. The strong rebound of the liquor sector is mainly due to the excessive decline in recent times, and the fundamentals of the liquor have been performing generally well. For a detailed discussion, see "This sector is facing the bottom again! 》
In fact, even if the consumption, medicine and other sectors rise or fall in the next three days of this week, it doesn’t mean much to me. Continuously buying funds or stocks from excellent industries at relatively low levels, sow them like seeds, and then wait for many years to grow into towering trees. This is the result I want most. is now the best season for sowing.
