Rebirth of the Capital Legend

Jia Yongxiang nodded and responded, "That's true. However, as pure concept stocks in the market become increasingly difficult to generate profit-making effects and bullish sentiment, and as performance growth stocks are driven by expectations of explosive performance, the profit-making effects they generate and the ability to absorb funds are getting better and better, then I believe that the large amount of funds gathered in the market, as well as the large number of retail investors who are following the trend or waiting and watching, will naturally vote with their feet and spontaneously converge on performance growth stocks that can generate market profit-making effects.

Therefore, I believe that a performance-oriented market investment atmosphere will inevitably form in the future.

Moreover, in the market, a number of low-valuation growth stocks will most likely have opportunities for revaluation as the market investment atmosphere and investment style change.

And we are in the current market development situation.

What needs to be done is to stick to the previous investment path, firmly go long on the performance growth stocks in the market, and focus on the core theme of a clear reversal in fundamentals."

"Haven't we already done that?" Song Shaopu smiled and said, "Based on the logic you mentioned and the direction of future market trends, the infrastructure sector is expected to continue to rise. Moreover, as the liquor and white goods sectors have the most certain fundamental reversal and the most certain future performance expectations, they will probably attract more attention from a number of investment institutions."

"Yes, I think so too." Jia Yongxiang nodded and continued, "From the perspective of the medium- and long-term development of industry fundamentals, there is indeed a lot of room for growth in the major infrastructure sector, as well as the two sectors of liquor and white appliances. However, the factors currently restricting the upward development of the market and the continued upward movement of these major sectors are mainly insufficient liquidity on the market, which is unable to attract more incremental funds from the outside world. In addition, the huge amount of trapped shares accumulated from the previous rounds of stock market crashes has not been properly digested under the current circumstances. The market liquidity is already insufficient, and with the suppression of the huge amount of historical trapped shares, it has become very difficult for the market to continue to move upward at this point in time.

This can be seen from the market trends in the past two days, which require constant stimulation from the trends of the U.S. and Hong Kong stocks.

Even with the support of several major positive factors last Friday.

The recent trend of our A-shares is still not very proactive.

The stimulation of favorable external news factors often shows a diminishing effect.

I think that the Shanghai Composite Index is at this position and cannot break upward quickly, and the conditions for a breakthrough are not mature.

Then, under the pressure of liquidity and the huge amount of historical trapped shares, it is highly likely that the market will continue to fluctuate in the narrow range of 3100 to 3000 points for a long time.

Once liquidity is confirmed, it seems that the only way to exchange time for space is to use it.

Only then can we effectively digest the huge amount of trapped shares caused by previous rounds of stock market crashes.

Especially the trapped shares caused by the third round of stock market crash. During the third round of stock market crash, there was basically a complete gap in the chips between 3300 points and 3000 points.

And this range is very close to the current Shanghai Composite Index.

Many people who were previously trapped in this area will probably have an unstoppable desire to sell after seeing the current trend of the Shanghai Composite Index.

After all, based on the trends over the past year, once you miss the opportunity to reduce losses or get out of the predicament.

In a long bear market, there is a high probability that the market will get even deeper into trouble.”

"According to what you said, the market's medium- to long-term outlook is relatively optimistic, but the short-term trend is relatively pessimistic." Song Shaopu said, "Is that what you mean?"

Jia Yongxiang responded: "That's what I mean. Although the market is not optimistic in the short term, it is still difficult to continue to plummet under the support of major infrastructure, liquor, white goods, medicine, consumption, electricity, finance, petrochemicals... these sectors that have seen a significant reversal. In other words, it is unlikely to fall below 3000 points and return to the previous downward trend step by step.

Moreover, the fundamentals of these sectors continue to improve.

Once the market falls under the pressure of trapped shares, the valuations of these high-quality growth stocks and many blue-chip stocks will be further compressed. In other words, their investment cost-effectiveness will most likely be further highlighted in the market adjustment trend.

In the current market situation...

No need to reduce positions.

I even think that if the market adjusts drastically and the core stocks in the corresponding core mainline sectors experience a significant drop, it will be a clear opportunity to increase holdings."

"Well, great minds think alike." Song Shaopu said with a smile, "I don't plan to reduce our holdings and take profits on the core stocks held by our fund at this point. Since Huayi Capital is still quiet at this stage, we naturally won't act rashly.

I believe that the decisive factor that determines the market trend and future expectations of the large-scale infrastructure is not on the market, but off the market.

As long as the national real estate market continues to maintain a hot speculative trend.

Active capital groups in the national macro-economy are still continuing to flow into the real estate market and large-scale infrastructure.

Then, the stock price trend of a number of core leading stocks in the main field of large-scale infrastructure will not stop easily, nor will there be a trend reversal.

According to the current situation of the offline real estate market...

Although the price increases in real estate markets across the country have begun to slow down and are not as aggressive as before, the scale of development of the entire industry is accelerating.

That is, stimulated by the continued rise in housing prices.

Many domestic real estate development companies are accelerating land acquisition and continuously expanding the scale of project development.

As long as this trend does not slow down, there will be no problems with the trends and future performance development of the related stocks in the major infrastructure sector.

In fact, what I am worried about now is that we have already invested in quite a few positions, but the holding costs are not low enough, and there is not much holding profit in the new energy industry chain.

Despite the important favorable policies issued by the state on the development of new energy industry last Friday.

In the minds of most investors, the entire new energy industry has undergone fundamental changes, and there is an expectation of continued explosive growth in the industry.

However, based on the actual trend of the new energy industry chain in recent days.

It seems that the main capital groups of various institutions still have some problems in recognizing this line.

Especially in the major sectors of complete vehicles, auto parts, and auto decoration, it seems that the situation of the entire new energy industry chain cannot be compared with the large-scale infrastructure line.

I was wondering if the new energy industry chain cannot gain unanimous recognition from various capital groups in the market.

Moreover, the subsequent development of the entire industry will not be able to escape the current situation if it fails to gain recognition from consumers in the terminal market.

So, even if there is a continued subsidy policy.

The scale of the entire industry and terminal sales volume are difficult to expand and develop substantially.

In other words, as long as end consumers have little interest in these products, even with subsidies, they will still not be able to compete with gasoline vehicles in terms of choice.

Then, the dawn of the development of the new energy industry is most likely still not here yet.

The development of related companies and the performance of related stocks will be difficult to change, and it will be difficult to be compared with the large-scale infrastructure line, as well as the liquor, white goods and other sectors.

What I’m afraid of is that the positions we have currently arranged will die before dawn.

After all, the terminal consumer market for new energy vehicles has not yet been opened up, and people have always been skeptical or even dismissive of electric vehicles.

As long as the terminal is not working, all the links in the middle, the so-called new energy industry boom, will become a complete castle in the air and will not be realized.

Therefore, for a number of stocks in this line of the new energy industry chain.

I have always maintained a certain degree of skepticism in my heart, and I don’t have as much confidence as I do in holding the core stocks in the large infrastructure sector.

Of course, this is also why we have no cost advantage in the new energy industry chain.

In market transactions, without cost advantages, it is difficult to hold on to your chips in the face of drastic market fluctuations."

"Based on the market trends of the new energy industry chain in recent days..." Jia Yongxiang took over and said, "The strength of long-term funds in the new energy industry chain is indeed not as strong as before the outbreak of the major infrastructure project, and the market divergence of this line today is obviously quite large.

But I think that since many companies in the entire industry have been engaged in widespread fraud, the country has already realized it.

Therefore, this time the policy is released, it will definitely be curbed or eliminated.

I think it shouldn't be particularly difficult to solve this problem technically.

As for the end consumer groups of the entire new energy industry chain, there are indeed some problems in terms of product selection or cognitive maturity.

But, if we add government subsidies.

Choosing a new energy vehicle will be much cheaper than choosing a gasoline vehicle.

So, I believe that even if the current electric vehicle technology is not very mature, there will definitely be many consumers willing to try and buy it to continue to promote the development of electric vehicle technology and the overall maturity of the industry.

In fact, we all know it.

The entire new energy industry still has some distance to go before it matures in scale and is put into widespread commercial use, and requires a period of technological accumulation.

However, as long as the future expectations are positive.

As long as the industry develops in the future and the industrial scale is presented, it will be stronger than it is now.

So, for many companies and stocks in the entire main line, there is enough room for imagination and upward momentum.

As long as today is stronger than yesterday, and tomorrow is stronger than today, the logic of natural rise will be smooth. Originally, everyone had no consistent idea of ​​the performance explosion and realization of the new energy industry chain.

From the perspective of current expectations and investor attitudes.

I think the investment thinking of large-scale infrastructure and the new energy industry chain is completely different.

Although everyone's investment in large-scale infrastructure is still for tomorrow, this tomorrow is visible and relatively clear. Of course, its development scale and growth ceiling are also relatively limited.

In other words, judging from this relatively clear development scale...

The general growth potential of the leading stocks in core industries in the main field of large-scale infrastructure may be three times or five times, and everyone's expectations are not too exaggerated.

However, the new energy industry chain is different.

At present, the penetration rate of electric vehicles in the entire domestic automobile industry is less than 1%.

If calculated based on the real estate market, that is, the final value of the urbanization rate, electric vehicles will eventually replace 70% of the fuel vehicle market share in the future.

So, this growth in market share penetration from 1% to 70% represents a very large space.

As long as this trend exists, the technology development path is correct.

No matter how exaggerated the valuations of some core leading stocks in the current new energy industry chain are, their future is bright and expectations are strong.

This tomorrow has much more room for imagination than the tomorrow of the main line of major infrastructure.

After all, it is obvious who has more room for imagination from 1 to 10 than from 0 to 1.

I think this is also the fundamental reason why Huayi Capital, an institution with huge market influence, decisively and aggressively increased its holdings in the new energy industry chain and took back the positions it had previously reduced after the country further clarified its future new energy development strategy under policy promotion.

I think the current market...

Whether it is the main line of large-scale infrastructure or the new energy industry chain.

The expectations for the future are still relatively clear.

Compared with the expected future development of the two main lines, the current valuations of many core stocks are still in a reasonable range, and no obvious risk points are highlighted.

In this case, we should have firm confidence and maintain our existing positions.

Look for opportunities to continue increasing your long positions."

"Okay." After listening to Jia Yongxiang's analysis, Song Shaopu pondered for a moment and said, "Think about it carefully, it is indeed true. If the development of the new energy industry chain is strongly supported by the country in the future and is the inevitable path for my country's entire automotive industry, then with continued policy support and as the technology becomes more mature, the terminal consumer market will definitely open up. This is the dawn of this industry. Even if it may be late, it will inevitably come. Our layout in this area may have tortuous performance feedback, but as long as we continue to reduce our holdings, we will definitely achieve performance profits far exceeding the market average in the future boom of the industry."

Jia Yongxiang smiled and said, "That's true. Investment is about investing in the future. I believe that since the country is making large and continuous investments, and considering the development of the industry, it has not only not cancelled various subsidies for the industry, but has also increased them, even though the industry is generally plagued by serious fraud, this is enough to show the country's determination to develop the entire new energy industry and the bright future of this line.

Since the dawn of the entire industry explosion has arrived, the future will eventually come.

So, what does it matter if it’s earlier or later?

We are not the hot money in the market, nor are we the mass of retail investors who like to chase hot spots. As institutional investors, we should have some patience. "