Wen Qiang’s market outlook

For two consecutive trading days, the indices in both places rose steadily against the background of a slight increase in trading volume. Although there was not a significant increase, there was a strong reversal of the trend. It still greatly inspired investors' confidence to do more.

Based on the current general background of A-shares, the probability of getting out of the big market is very low, but it is worth looking forward to the gradual recovery of A-shares from the predicament. After various unfavorable factors gradually recede, the market's return to value balance should be the biggest driving force for the market to do more.

The key to A-shares now is who can carry the banner of revival. Flooding with coal and dancing should not become the main tone of the market. First of all, China's economy has not experienced a significant recovery. Even if it recovers against the background of strong demands from high-level officials for economic transformation, the probability of continuous sharp increases in resource prices is very low. Secondly, China’s increasing awareness of environmental protection. The model of consuming a large amount of resources in exchange for short-term economic growth is being strictly controlled by management. Under such a background, it is also difficult for individual resource stocks to continue to strengthen.

Finally, there is funding. A-share investors will immediately think of the wave of prices driven by coal and nonferrous metals as soon as coal and nonferrous metals move. However, I would like to remind you that this time is the same as the other. At that time, the market capital was relatively abundant, but now A-shares are short of money. The continued strength of coal and non-ferrous metals requires the maintenance of a large amount of funds, and the recent severe crackdown has made few people in private equity, public equity, and Niu San take the risk to take the lead.

This principle also applies to heavyweight stocks that have repeatedly strengthened before. The main market forces have been trying to guide investors into the so-called value investment track when the market is weak, and have repeatedly pushed up heavyweight stocks. The result is that heavyweight stocks are basically a one-day trip. The fundamental reason is that the market lacks funds. Without incremental funds, it is difficult for a large number of heavyweight stocks to truly do well.

There are two main reasons behind the resource trend that started on Thursday. After the main players in the first market continued to tinker with heavyweight stocks and failed to follow suit, they could only resort to the next best thing to boost coal and nonferrous stocks, which had previously suffered a large decline and had relatively loose chips.

Secondly, due to the recent continuous strengthening of management control over real estate, a large amount of social funds are trying to find investment channels. In the inherent thinking of Chinese investors, land and resources are the most valuable investments. Therefore, under the background that it is difficult to make progress in the real estate market, the purpose of on-site funds to first start buying resource stocks is probably to cater to the psychology of the majority of investors.

What is needed now is patience. The market is gradually getting better, but individual stocks may not necessarily strengthen across the board. This requires investors to carefully select the objects they hold. Regardless of the concept, as long as there is continuous intervention of funds, individual stocks will definitely become stronger than the market as the market gradually recovers. Xiongan and Zhudawan should be the long-term themes of the market.

The stock market is also fair. If someone makes a profit, someone will lose. If you want to make a profit in a market that does not create wealth by itself, in addition to having rich knowledge and experience, you must have a good psychological quality and a process. People's vision is often the key to victory or defeat. Friends who are familiar with me know that I share unique solutions every day. Friends who want to learn can add me to communicate with me!

The opening of the Hong Kong-Zhuhai-Macao Bridge will be a huge boost to the increase in the flow of people and logistics in the three places. In addition to transportation, hotels and tourism should be direct beneficiaries.

The rumor that Xiongan will build a canal has a direct stimulus to the concepts of canal construction and ship power equipment.

It’s also news that only by standing high can you get truly good returns.