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Why do stocks fall before the Spring Festival every year?

Every Spring Festival, whether to hold shares or clear stocks for the New Year has become a problem that many people have to consider. According to my observation, there are many people who choose to sell stocks before the Spring Festival, so most of the stock markets will fall before the Spring Festival. Let me analyze the reasons and introduce what stocks to buy according to my own experience. Reasons why the stock market fell before the Spring Festival

1. People need money for the Spring Festival

In China, the most important festival during the Spring Festival, generally speaking, people will try their best to return to their hometown no matter where they are. When I go home, in order to avoid others looking down on me, I usually express myself to the maximum extent. As you will know here, it is actually spending money. Smoking should be good, drinking should be good, and giving people red envelopes must not be less.

with this, people can almost spend all their hard-earned money in a month.

With many people, for the sake of so-called face-saving, they even beat their faces to be fat. It is conceivable that people who buy stocks will choose to sell their stocks before the Spring Festival, or they will eat and drink whatever they want during the Spring Festival.

2. There are many uncertain factors

The Spring Festival is the longest holiday in a year. Although the national legal holiday is only seven days, in fact, most units have a longer holiday. During the time period of the room, there are likely to be some changes in policies, which will focus on the first day of the stock market opening after the holiday, so there are many uncertain factors that are another reason for the stock market decline before the holiday. Suggestions on buying stocks before the Spring Festival

1. Choice of time

Generally speaking, I personally think the penultimate day before the festival is the best time, because only on this day can the money be raised before the festival, and even if it is sold on the last day, it will be useless, so the stock market is generally stable on the last day before the festival, and there will be no big waves, so I suggest seizing the favorable opportunity of the penultimate day before the festival.

2. Choose companies that are well-run and fell too hard in the early stage

Some companies are well-run, but they fell too hard before the holiday. Generally speaking, this kind of stock has the potential to rise, and it is likely to rise after the holiday, so it is recommended to choose this kind of stock.

3. Choose funds traded in the securities market

Not only stocks can be traded in the securities market, but also funds and government bonds, which are as convenient as securities trading. Investors with weak ability to resist risks can also choose this investment method. Buying funds traded in the stock market with the help of securities software is not only less risky, but also convenient to buy and sell.

In a word, you should be very careful about what you invest, because risks are everywhere. I think it is worth thinking about what stocks to buy before the holiday, and I hope you can refer to the above suggestions.