Why do you say that the bull market buys the old base and the bear market buys the new base?
1, new fund
In the bear market, the new fund can consider delaying the opening of positions, thus avoiding the position requirement to a certain extent, thus ensuring that the net value of the fund will not fall sharply; In the bull market, because the new fund has a period of opening positions, when the bull market rises sharply, the new fund can't get a large expected return because it has no time to add positions, so the increase of the fund's net value is often not too big.
2. Old funds
The stock position of stock funds shall not be less than 80%, and the stock position of hybrid funds shall not be less than 60%. In the bear market, due to the position regulations, the old fund should maintain the prescribed position even if it falls seriously, so it is easy to cause the net value of the fund to fall sharply; In the bull market, the net value of old funds rose rapidly because of their high positions.
Bull market buys old base and bear market buys new base, right?
This statement cannot be said to be completely correct. Fund investment is influenced by many factors. In a bear market, old funds can also control their withdrawal to some extent through stock selection and position control. In the bull market, new funds can also catch up with the rising momentum of the bull market by opening positions quickly. Therefore, this statement is for reference only, and how to choose a fund needs specific analysis.
That's all bull market buying old base, bear market buying new base. I hope it helps you. Warm reminder, financial management is risky and investment needs to be cautious.