A-share market hits new lows for 8 consecutive days; veteran investors say it's

Since entering September, over the past 8 trading days, there have been 8 consecutive trading days hitting new lows, with a drop of nearly 100 points. Such market conditions have once again challenged the perceptions of A-share investors.

Recently, many investors feel that watching A-share market trends is not as engaging as watching football. Although football may be lost, fans still have some "anger" and passion. In contrast, A-share investors seem to have been laid flat, as if they already know what the day's market will be like as soon as it opens, with no passion at all, and they are now too lazy to even complain!

As investors, we must understand a key question: why is it that only a minority make money in the market, while the majority suffer losses, and why is wealth always in the hands of a few?

In the investment market, wealth does not emerge out of thin air but is transferred. For example, if you hold 10,000 shares valued at 100 yuan each, the total market value is 1 million yuan. When the stock price rises to 200 yuan, the value of the shares becomes 2 million yuan. To convert the 2 million yuan into cash, someone else must take over, and this process of transfer is actually the process of wealth transfer.

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The process of wealth transfer is divided into two types: one is to buy back the chips from others at a low position, and the other is to transfer the chips to others at a high position, thus achieving wealth transfer and increasing one's own wealth. In fact, the profit and loss in the stock market are generated in this way.

Faced with the current market position, I would like to share my personal views:

1. At present, both the dividend yield of the stock market and the maturity yield of the bond market are higher than the return on many financial products, which is very rare in the history of A-shares. This also indicates that the current valuation of A-shares is at a historical low!

2. Many investors dared to buy boldly at positions far above the current level, such as 3300 points, 3200 points, 3000 points, etc., but now that it has reached the 2700 point level, they are afraid, fearing that it will fall even deeper. Now, think about what I explained above about "how the stock market achieves wealth transfer." Do you still think the current position is high?

3. The current market situation cannot be compared with the 2635 point level. We no longer have securities lending and borrowing, various restrictions on shareholding reduction, etc., and there are fewer factors for short-selling, so even if the market falls now, it will feel very weak!

4. The current market has not shown a bottoming signal. I think the best bottoming signal would be a rapid decline in the next two days, breaking through the 2700 point level, and then quickly rebounding back to the 2700 point level, establishing the bottom.5. In the current market, if there is a desire to reverse the trend and start an upward movement, the market must see an increase in trading volume, and it must be a sustained one. It cannot be like the situation at the end of June, July, and August, where there was only a single day of increased volume. Only with a continuous increase in volume, indicating buying power, will the market be able to rise higher and higher.

To reiterate the viewpoint: The market has not yet reached its bottom. If you wish to speculate on price differences, then monitor the market closely. If you have already taken a position and chosen to wait, then you can relax with a cup of tea.

Finally, let me repeat once more: Opportunity and patience!