When the stock market plummets, not all stocks generally fall, and a few stocks will rise against the trend, and these stocks are likely to be the stocks of institutional groups. The following are the reasons for the resilience of institutional stocks compiled by Bian Xiao, hoping to help everyone.
Why do stocks held by institutions resist falling?
The stock resistance of institutional groups is the result of the joint action of individual stocks and institutional funds. On the one hand, most of the stocks held by institutions are well-tracked leading stocks, and the long-term growth of these stocks is highly certain; On the other hand, because the institution has already surged, there are relatively few retail investors in this stock, and it will not fast forward and fast out like other stocks. The shareholding funds are relatively stable and naturally it is not easy to fall.
Of course, institutional agglomeration is not always stable, and the example of "institutional agglomeration" also happens from time to time, because the market is full of black swans, such as Antarctic e-commerce, which was held by as many as 1 10 institutions in the third quarter of 2020 due to its outstanding performance, accounting for 38.44% of the latter's circulating share capital. In the first week of 20021,the Antarctic e-commerce of "Internet celebrity e-commerce concept stocks" was caught in a financial fraud storm, and its share price plummeted.
It can be seen that the stocks held by institutions are not always good. In the final analysis, institutional cohesion is only one of the results of market operation, and what is really conducive to stock growth depends on the factors of listed companies' own operation.
What do institutions need to pay attention to?
During the institutional group, it is not stocks or industries that have been rising, and there will be adjustments in the middle. Sometimes when the market fluctuates greatly, such as after two bull markets, the shareholding will also drop sharply.
Institutional investors are relatively rational and are generally excellent companies. In other words, if you can grasp the performance of the industry or company, you can get on the bus in advance and other institutions to hold your sedan chair. Of course, this also tests the skill of investors.
The valuation of stocks held by institutions is often very high, because institutions are buying the future and may encounter better performance growth in the future. Therefore, under the current high valuation, buy buy should buy it.
Don't have the idea of hunting for the bottom when the group collapses.
Why does the organization want to hold a group?
A while ago, institutional shareholding rose sharply. Many people don't understand what institutional shareholding is and why these institutions want to hold a group. The so-called institutional shareholding actually means that large investment institutions, such as funds, only choose a few high-quality stocks to buy, and a large number of institutions are clustered on a few stocks, which is called institutional shareholding.
In fact, holding a group means reporting a group to keep warm. For example, penguins in Antarctica hold a group to keep warm in the coldest weather. This phenomenon is also determined by the mechanism of the organization. Because the organization earns the management fee of the fund, they don't care much about the absolute income. The most important thing is stability, so they always invest their funds in leading stocks with large market value. Of course, not all leading stocks with large market value will attract institutions. You can't see leading stocks like Maotai and Contemporary Amperex Technology Co., Ltd. clustered together, but leading stocks like ICBC and Vanke won't have institutions.
The core of institutional unity has two aspects. The first is to choose the right track, and then the fundamentals of individual stocks should be good enough and the growth should be high enough. Only such stocks have great rising potential.
At present, the main reason for the intensification of institutional unity is that the institutions have the leading power and have too much funds in their hands, and the state is now guiding investors to make long-term value investments. So everyone is more concerned about the fundamentals. You can see how much money keeps flowing into the market like a fund. At present, large hot money owners have no right to speak and can only follow big institutions. In the past, it was difficult to buy stocks with small market value, because the market paid little attention and few people followed, so it was difficult to pull them up. Now everyone is good, the organization is good, the foreign capital is good, and the followers are also happy, and the regulatory authorities are also happy to see this situation. Are you happy?
In addition, institutions like funds will also have ranking pressure. If you rank high, you can attract market attention, attract more funds and earn more management fees. So if you don't configure the varieties configured by your peers, your peers will not hold a group. Once it is blocked, it will be ok, otherwise the net value will not grow as fast as others. No matter how you explain it, customers will think you are incompetent, and then take all the funds and invest them in those who rank high.
In short, it is the experience of institutional stock speculation. This group is divided into three stages. The first stage is to speculate on performance and growth; The second stage of speculative valuation; The third stage, the hype is * * * knowledge. Finally, with the continuous strengthening of institutional unity, there will be fewer and fewer retail investors in the market, and a new investment era will come.