Two indicators to measure cheapness: convertible bond yield index and convertible bond median.

The first indicator, the income index of convertible bonds, is simply: the number of convertible bonds below 100 in the market/the total number of convertible bonds in the market. If the profit index is greater than 50%, it is very likely to make money by investing in a group of convertible bonds, and the convertible bond market is 4 to 5 stars; If the profit index is 30%-50%, then the probability of investing in a group of convertible bonds is high, and the convertible bond market is 3-4 stars; If the profit index is 10%-30%, then investing in a group of convertible bonds has a certain probability of being profitable, and the convertible bond market is in 2 to 3 stars; If the profit index is below 10%, it is not recommended to invest in convertible bonds. At this time, the market is at 1 star, and it is not recommended to invest in convertible bonds.

The second indicator, the median of convertible bonds, is also used to judge whether the convertible bond investment is in the "cheap" stage. The median of convertible bonds is that all convertible bonds are sorted according to the price from low to high, and the convertible bonds with the middle price are taken to see what their prices are. The median of convertible bonds is below 100 yuan, which means that the convertible bond market is 4-5 stars; The median of convertible bonds is between 100 yuan-1/0 yuan, indicating that the convertible bond market is in 3-4 stars; The median of convertible bonds is between 1 10 yuan and 120 yuan, which means that the convertible bond market is in 2-3 stars; The median value of convertible bonds is above 120 yuan, which means that the convertible bond market is at 1-2 stars.

The characteristics of diversification are very obvious. In order to spread risks, you need to hold at least 20 convertible bonds, and try not to pay for the convertible bonds whose cost only exceeds 120 yuan. There are two ways to buy diversified investment: investing in convertible bonds ETF, but this way is not effective in the short term (1 year). The reason is that ETF, the main convertible bond in the market at present, buys a large number of bank convertible bonds in order to avoid risks. Bank convertible bonds are very high-quality investment targets, but the price fluctuation is small, very stable and the short-term income is not high. You can manually choose to buy a convertible bond portfolio with low valuation. Every time the convertible bond investment market enters the 4-star stage, you can manually choose to buy.