First of all, most of the stocks held by institutions are well-tracked leading stocks, and the medium and long-term growth of these stocks is highly certain. At the same time, there are more institutional investors and relatively few stock retail investors. The following are the reasons why the institutional shares organized by Bian Xiao can't be touched, for reference only, hoping to help everyone.
The reason why institutions can't touch stocks.
However, as the investment value of such industries and enterprises is recognized by more fund institutions, it will continue to attract various institutions to join, and the trend of institutional unity will intensify. The increase in market recognition will make their valuation more optimistic. Even if there is an adjustment, funds will quickly enter the market, driving the stock price to rebound. Once the high valuation premium is blown up, it will lead to a bigger decline, which is another form of bubble.
In short, it is best for retail investors not to touch high-valued stocks held by institutions. Choosing a value goal is one thing, and choosing a reasonable price is another. For stocks whose price far exceeds their value, no matter what form this bubble takes, they should stay away.
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.
Why not touch the stock of the organization group?
First of all, most of the stocks held by institutions are well-tracked leading stocks, and the medium and long-term growth of these stocks is highly certain. At the same time, there are more institutional investors, and there are relatively few retail investors. They will not be fast-forward and fast-forward like other stocks, and their holdings will be more stable, so they have certain "anti-falling" attributes.
However, as the investment value of such industries and enterprises is recognized by more fund institutions, it will continue to attract various institutions to join, and the trend of institutional unity will intensify. The increase in market recognition will make their valuation more optimistic. Even if there is an adjustment, funds will quickly enter the market, driving the stock price to rebound. Once the high valuation premium is blown up, it will lead to a bigger decline, which is another form of bubble.
In short, it is best for retail investors not to touch high-valued stocks held by institutions. Choosing a value goal is one thing, and choosing a reasonable price is another. For stocks whose price far exceeds their value, no matter what form this bubble takes, they should stay away.
What is group stock?
Institutional shareholding refers to stocks held by multiple institutions at the same time, and institutional funds account for a certain proportion. On the one hand, there are few high-quality targets in the market, and on the other hand, because of the huge funds of institutions, they can't go in and out as fast as retail investors, and the pressure on performance is urgent, which leads many institutions to follow suit and buy high-quality stocks in the current market, leading to the phenomenon of institutions holding groups.
Although the stocks of institutional groups are usually relatively high-quality stocks, sometimes institutional groups disappear. For example, Antarctic e-commerce, last year's 10 to 12 stocks, the closing price of Antarctic e-commerce was only 9.23 yuan, down 55%, and there were a large number of institutions in it, which undoubtedly caused certain losses.
There is also institutional agglomeration in the American stock market. Most institutional investors are equipped with high-quality technology and pharmaceutical companies. As far as the A-share market is concerned, the high-quality listed companies in the market have been robbed by funds, thus becoming a group. The phenomenon of holding a group also proves that the A-share market is gradually maturing.
An iron ball, a turntable. The stocks that institutions choose to hold groups are carefully selected stocks, which deserve long-term attention. For traditional industry leaders, the industry barriers of individual stock leaders are very high and their advantages are great, and their industry status will not change much. The technology sector is changing rapidly, so it is recommended to pay attention to potential companies.