Analysis of how to be tickled in the face of hot spots

Some time ago, my friends kept asking "Pro-cyclical surge, do you want to get on the bus?" In the final analysis, when there are new hot spots in the market, can the citizens catch up? What should we do in the face of hot spots? Xiaobian here sorted out how to face the hot spots, for your reference, I hope everyone will gain something in the reading process!

Hot spots in the market that we chased in those years

Looking back at the hot spots in the market in recent 1 years, we can find several characteristics:

1. The main reasons for hot spots are long-term policies, short-term policies, the popularity of themes or concepts, and the impact of unexpected events.

2. Hotspots last for a long time or a short time, which may last for several years due to long-term policies, but may last only a few days because of the emergence of a certain concept or the occurrence of unexpected events.

3. Hot-spot-related plates will skyrocket in a short time, but after the heat recedes, the retreat range is also large.

(Please note: although the retracement is much smaller than the increase in the index, a 5% decline means that it has fallen back to the previous low point due to the large base after the previous increase. )

Simple "life cycle diagram" of hotspots

Generally speaking, every market hotspot will go through the following processes from its appearance to its heat dissipation.

However, many ordinary investors are still working overtime to learn new concepts due to the lag in information acquisition and lack of professionalism and judgment. The main funds have left the market and the investment opportunity has been missed.

can hot spots be chased?

After reading this, many readers may think that Xiaobian must be trying to persuade everyone not to chase hot spots! It's not ~

"wall crack" that suggests fund investors not to chase "short-term hot spots" for the following reasons:

1. Difficult to grasp: some short-term hot spots may only last for a few days. For non-professional investors who mainly rely on media reports to obtain information, when you just realize that there are hot spots, the hot spots may be almost finished, and it is very easy to buy high and sell low at this time, and eventually become a catcher.

2. high risk: chasing short-term hot spots seems to achieve high returns in a short time, but it also means that a large amount of principal may be lost soon.

3. Too much tossing: Don't speculate the fund as a stock. The correct way to open the fund is not to choose the time frequently, not to fiddle with it and to hold it for a long time.

4. high cost: investors who chase hot spots often have a high turnover rate, and constantly buying and selling funds will bring a lot of handling fees and the cost is too high.

5. Long-term benefits are not outstanding: short-term hotspots bring huge gains in a short time, but the benefits of such funds are not so significant in a long time, which is not suitable for long-term investment by the people.

as for the hot spots with high long-term prosperity, it is suggested that the basic people can choose the best and hold them for a long time.

so how do you judge that hot spots are long-term? Long-term hot spots worth investing have the characteristics of benefiting from long-term policies with strong policy support, rigid demand and huge development potential.

For example, driven by valuation restoration, policies and fundamentals, there are still structural opportunities in industries and themes. It is suggested that investors should pay attention to domestic software/hardware substitutes, semiconductors, network security and other related varieties that have brought high prosperity due to policy support in the Tenth Five-Year Plan.

In addition, we can pay attention to optional consumer goods, which are more flexible than essential consumer goods, and automobiles and household appliances driven by fundamental improvement still have performance opportunities. However, if the short-term income expectations of related industries cannot be moderately lowered, we can pay extra attention to relatively stagnating areas in the main line of recovery, such as the media and home furnishing industries.

In recent two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? For these questions of investors, Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, firstly, the essence of fund products is a portfolio of securities, and the performance of fund returns is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for stock funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. Under the rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

in terms of long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull market and volatile market. For example, in 26 and 27, more than 8% of equity funds achieved more than 1% returns, while the proportion of individual investors did not reach 5% to 3% returns in 212, and the survey showed that more than 5% of individual investors lost 5% to 5%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems in China's stock market construction, economic development and asset management industry can't be eliminated in a short time, and they all need to be promoted by the rationality of the market as a whole. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your own risk tolerance is weak or the funds you want to use in the short term, you can't invest too much in a single stock fund, so as not to be greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessively chasing hot funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks and obtain long-term stable returns through fixed investment and portfolio allocation.

Precautions:

First, we should pay attention to arranging the proportion of fund varieties according to our risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and inferior products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund's website, so as to get a more comprehensive and timely understanding of the funds you hold.

Fourth, we should pay attention to buying funds and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate remains ahead, its income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" and not blindly pursue the new fund. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in short-term ups and downs. It is obviously unscientific to judge the merits of the fund by short-term ups and downs, and it is necessary to comprehensively evaluate the fund in many aspects and make a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as stable and worry-free fixed investment and affordable and simple dividend conversion.

Hot related articles:

★ Six small ways to attract customers to eat in restaurants

★ Thanksgiving speech

★ Common stock terms: monkey market

★ Trading skills of 221 stocks

★ Real estate enterprises will start "replenishment" mode

★ Thanksgiving theme activity speech

★ Real estate industry mode will change <