"Yorkey" stocks should be traded in bull markets and retreated in bear markets.

Maybe you didn’t know how to trade stocks during the 2006-2007 bull market, and you didn’t make a good reserve of “original capital” during the 2014-15 bull market, and you didn’t catch up on the “fast track to wealth.”

But as long as you recuperate in the bear market, make good food reserves, and run and get in the car when the bull market approaches, you will have a high probability of sharing in the "gluttonous feast" of the bull market.

Everyone may have heard of a word: bargain hunting.

"Buy low, sell high" is always the essence of speculation or investment.

Everyone wants to buy at the bottom of the market and wait until it rises sharply before selling, but most people don't understand the concept of "bottom" comprehensively enough.

Today I would like to share with you the "three bottoms of the stock market": policy bottom, valuation bottom, and market bottom. Understanding the differences is very instructive to deepen the internal operating rules of the stock market.

Policy Bottom Line: Movements of the “National Team” “Bailout” refers to a series of measures taken by the government to stabilize stock prices in order to maintain stability as the stock market continues to decline.

For example, we often hear about the "national team". When the market falls too hard, it often comes out to pull up the market and maintain the stability of the market.

National Team: An important indicator of market trends. In the market, individual stocks in the three sectors of securities firms, banks, and insurance are called the "national team."

But in fact, the most authentic "national team" is Central Huijin, social security funds, and insurance funds. They are important vanes of the market trend.

Central Huijin Central Huijin mainly invests in key state-owned financial enterprises, including some banks, securities firms, insurance companies, etc. Huijin’s shareholdings usually do not change much unless it is a bear market like 2008, which is a signal from the government to inject confidence into the market.

.

We must pay attention to analyze the real purpose of Huijin's entry into the market. Once Huijin makes a move, it will definitely attract attention.

Social Security Fund Social Security Fund is the fund that cannot lose money on the market and is a model of long-term value investment. Moreover, Social Security Fund has a relatively accurate grasp of the general direction of policies. The large number of social security funds entering the market indicates that policy opportunities in the market may be coming.

Insurance funds Insurance funds belong to the "quasi-national team", which has information advantages. It mainly makes long-term value investments and plays an important role in the stability of A-shares.

(Of course, "barbarians" holding up placards violates the requirements for insurance funds) The trends of the "national team" can be understood from the changes in shareholders of listed companies, or from the "institutional positions" column on websites such as Oriental Fortune to learn about the latest social security,

Changes in insurance capital positions.

Valuation bottom: value investors enter the market. According to the principle of "prices fluctuate around value", when the market falls sharply, a certain safety space will be created. At this time, value investors, such as social security funds, will enter the market one after another. Their actions will have an impact on the market.

The turning point of the market trend plays an important role.

To determine "low valuation", the price-to-book ratio method is mainly used.

Price-to-book ratio PB = stock price/net assets per share, which measures the market price corresponding to each dollar of net assets.

From the price-to-book ratio trend chart of A-shares over the years, we can observe that when the Shanghai A-share market's net ratio is lower than 2, it often means that the A-share is at the bottom of valuation, while if it is higher than 5, it usually means that it is at the top of valuation.

, and the GEM valuation is significantly higher than the broader market.

Market bottom: The real bottom is here. When judging the market bottom area, follow this order: (1) First, determine the general area of ??"valuation bottom" through the low area in the historical price-to-book ratio chart of A-shares.

(2) Then judge the "policy bottom" area based on the attitudes and actions of the government and regulatory authorities, such as market protection behaviors, etc.

"Policy bottom" usually appears suddenly under the stimulation of significant positive news. At this time, prices rebound rapidly, which is short-term and difficult to participate in.

(3) Finally, find the real bottom signal of the market through technical analysis, psychological analysis, etc.

Usually, a "market bottom" is characterized by a panic-driven accelerated decline in stock indexes, and any favorable policies seem to have no effect.

Transaction volume is extremely sluggish and land volume continues to appear.

The market bottom takes a long time to build. After pulling up from the lowest point, it will often linger at the second-low position for a long period of time.

The formation of a market bottom requires the cooperation of multiple factors, mainly including: 1. Liquidity bottoms out, especially MI growth rate bottoms out; 2. Market panic reaches its extreme.

Funds and sentiment couldn't be worse, it's the bottom of the market.

There are analysis on many websites, of course you can also go to Yoke.