The reasons for the continued rise in core stocks such as liquor, food and pharmaceuticals are complex.

The main reason is caused by the serious polarization between rich and poor.

The annual report of China Merchants Bank contains the asset information of depositors. About 2% of them control about 81% of the assets, and 6 out of 10,000 people control 31% of the assets. A large amount of wealth is in the hands of a few people.

This is reflected in the stock market, where a small number of people or institutions control a large proportion of investment funds. Although retail investors have a large number of investors, their proportion of assets is very low.

Due to the concentrated use of huge funds, the huge size leads to three characteristics: first, they must buy stocks with large market capitalization; second, due to the huge size, they cannot and do not want to pursue excessive profits, and stable value appreciation is their goal (1)

They are satisfied with an annual profit of 10%. This 10% is more than ordinary people earn in a lifetime); third, people with this level of wealth have quite mature business experience, so they do not speculate in stocks themselves and are used to entrusting professionals to them.

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These characteristics lead to the phenomenon you see.

In fact, they didn't consider shipping at all. They just allocated their assets to financial markets such as stocks.

Think about it, even if these high-quality companies are more expensive to buy, as long as you hold them for a long time, you are still guaranteed to earn an average annual profit of more than 10%.

This trend has been on display since 2012, and accelerated with the acceleration of wealth differentiation after 2015.

Currently, while ordinary people are still speculating on houses, these wealthy people have already taken the lead in adapting to the trend of social development and transferred their assets to the financial market.

What a shame!

Leeks are always a step late.

As for other stocks fleeing as soon as they rise, that's for sure!

Originally, the number of stocks was large and the amount of retail investors' funds was small. It was impossible to harvest leeks using the methods of Changzhuang and Laozhuang.

Pull it up a little, but no one is following it, so I can only do it short, flat and fast, and cut some leek hair.

It is also caused by the divide between rich and poor.

This trend is for the next few decades.

It will be difficult for you to buy these high-quality companies at cheap prices in the future, and the overall stock profitability will continue to decline.

When a bear market comes, you'll find that these high-quality stocks decline very little.

Personal point of view, only for reference.