Life is like a journey against the enemy, and I am also a pedestrian.
Life and investment are both a long practice. New investors who are new to the market are not only often troubled by timing, stock selection, and other problems, but may also be easily affected by market sentiment.
The saying once circulated in the investment circle: "There are many people who have five times the amount of people who have one times in five years, and there are few people who have doubled in five years." This means that the market situation is complex and changeable, and there may be many people who have obtained high returns in short-term market conditions, but not many people who can maintain good returns in long-term investment. John Berger, the father of the
index fund, wrote in "Investing Stable Earning" that owning all listed companies' stocks at a lower cost is a successful stock market investment strategy, and index investment in is an easy way to implement this strategy.
index investment can help investors obtain overall market returns and obtain good returns in long-term investment. However, this does not mean that you can make money every year.
Take Shanghai and Shenzhen 300 Index as an example. In the ten years from 2012 to 2021, the index has more than doubled, but from the perspective of single-year returns, all of which have recorded negative returns in four years.
is actually more than the Shanghai and Shenzhen 300. The familiar broad-based indexes such as CSI All Index, Shanghai Stock Exchange 50, CSI 500, and ChiNext Index have all increased by more than 100% in the past decade, and the ChiNext Index has risen by more than 300%. However, if one year is used as the observation scale, the above indexes have recorded negative returns in individual years without exception.
We are often reminded that "investment is risky". Historically, some indexes have achieved good returns in the long run, but they do not make money every year.
As John Borg said, "It is gratifying that long-term returns of index funds can always make up for the short-term pain." Investors can smooth out short-term fluctuations in the market through long-term investment.
Investing is a test of human nature. The past cannot represent the future, and the market is always difficult to predict, so investors need to be more rational and patient, neither trapped in their hearts nor confused in their emotions, wait patiently when there is no wind, and sail far away when the wind blows. I believe that in the long-term upward trend, short-term fluctuations are like temporary dormant in winter, and the warm spring will surely come.
E Fund Index Pass wishes you good night.
Planning: Ding Jianming Wang Chao
Copywriting: Zhao Zhonghao
Anchor: Liu Yingjie
Editor: Zhang Nan Ye Song
