Chapter 140 Cycle Investment, We Must Follow the Biggest Player

But immediately, Su Xiaoxia reacted and said, "You are a value investor, so of course you don't look at those technical analysis things."

Li Feng slowly shook his head and said, "Sister Su, strictly speaking, I'm not a value investor either."

"What is that?"

This time, not only Su Xiaoxia, but also Lin Menghan and Zhao Xinyue were a little surprised.

Li Feng thought for a moment and said, "It should be considered a cyclical investment."

"What is cyclical investment?" Lin Menghan asked.

In her impression, the investment schools in the stock market are either technical investment, value investment, or the recently popular value speculation.

However, I have never heard of cyclical investment.

Su Xiaoxia also looked confused. Before coming here, Zhao Xinyue repeatedly told her that if she came here to listen, she would definitely be surprised.

Sure enough, this was quite a shock. First they analyzed the documents, and now they brought up something about cyclical investment.

If Li Feng had not written stock reviews for the B City Metropolitan Newspaper and won a prize in some stock trading competition in 2015, she would definitely think that he was a big liar.

Li Feng looked at the three people's expressions and asked in a gentle and persuasive manner, "Sister Su, you understand technical speculation. I want to ask, what is the most difficult thing about speculating on a stock in order to make a profit?"

"The most difficult thing?" Su Xiaoxia thought carefully and said, "The most difficult thing is to use various technical indicators to judge the intentions of the banker."

"If the market maker wants to clean up the market, retail investors must hold on. If the market maker wants to sell after pushing up the price, retail investors must resolutely sell their stocks first!"

"That's what we often call following the banker and fighting the banker."

Su Xiaoxia told the story slowly.

Li Feng nodded and suddenly said, "If a dealer reveals his intentions to you in advance, can you make money?"

"The dealer revealed his intentions to me? Impossible, absolutely impossible!"

After hearing this, Su Xiaoxia flatly rejected it.

"The banker wants to eat the flesh and drink the blood of retail investors. Is he so kind? I'm afraid he's going to set up a pig-killing scheme and cut my leeks. There's no such good thing in the market. Xinyue, do you think there will be such a good thing?"

Su Xiaoxia thought what Li Feng said was too funny and turned to look at Zhao Xinyue.

Zhao Xinyue also shook her head like a rattle and echoed:

"That's definitely impossible. The banker isn't a philanthropist. How could he be so kind? Would he tell retail investors about his trading intentions? I'm afraid he wouldn't even dare tell his wife. Li Feng, you're taking this joke a bit too far."

Although Lin Menghan didn't quite understand technical speculation, she knew the market makers' rules and it was impossible for her to reveal them to others, let alone retail investors.

Li Feng stood up, picked up a whiteboard marker, and wrote the word "banker" on the whiteboard. After tapping it, he said, "Who said the banker didn't reveal his intentions?"

"In our Guo Jia, Guo Jia is the biggest manipulator. He has written all his trading intentions in the document of the Central Economic Work Conference and told everyone, including retail investors."

"Next year, what to do and how to proceed are all clearly written. When investing, if you want to follow the market makers, you should follow the biggest ones, not just those technical analysis charts."

"As the biggest operator, Guo Jia controls a vast amount of resources and can directly influence the success or failure of the entire Guo Jia, the entire industry, and individual stocks."

"These are all things that are out in the open, but unfortunately many people just don't believe them."

"When we invest, we must take the right path and avoid these overt schemes to make our investment last longer and further!"

“So, what is cyclical investing?”

Su Xiaoxia felt that Li Feng was too arbitrary in dismissing technical analysis in one fell swoop.

Li Feng continued:

"In essence, any investment is a cyclical investment. Whether it's a country, an industry, or even a company, each has its own development cycle."

"Just like a person's life, from babbling at birth to youthful vigor and vitality, and finally old age, it is also like nature, with spring bringing life, summer growing, autumn harvesting, and winter storing up, the four seasons cycle."

"Cyclical investment means sowing in the winter in an industry, betting when the cycle is just beginning to sprout, and harvesting in the autumn, when the cycle is about to decline. This is cyclical investment."

Li Feng said a lot.

Su Xiaoxia didn't understand at all.

Zhao Xinyue seemed to understand but not quite.

Lin Menghan understood half of it. After thinking it over, she opened the previously closed webpage about the Central Economic Work Conference and asked, "Since we're going after the biggest banker, then the document says to prioritize technology and encourage mass entrepreneurship and innovation. Why don't you invest in tech stocks?"

"Menghan, that's a very good question," Li Feng praised as he wrote the word "technology" on the whiteboard and said, "The manipulation of traders will cause cyclical fluctuations in many industries."

"But I never look at or buy technology stocks."

"Because the risks of innovation are too great, and the randomness is too strong and difficult to predict. Sometimes, if the technical route is wrong, everything will fail and you will be eliminated by the times. This kind of situation can be seen everywhere."

"For example, the once glorious Kodak film, Nikon cameras, and more recently Nokia mobile phones are all bloody examples, not to mention these listed tech stocks."

"The valuations of these tech stocks are simply too high. Once innovation fails and there's no performance to back it up, the stock price will plummet like a waterfall!"

"To a certain extent, investors buy tech stocks to fulfill their dreams. Just like newly launched electronic products, their prices are bound to be very high because they include a conspicuous premium. But if you wait a month, or even several months, for production capacity to increase, the price will naturally come down."

"When we choose cycles, we must choose large cycles with regular patterns, such as the real estate cycle and the financial cycle. These are large cycles that can accommodate trillions of dollars."

"Deep waters attract big fish. Only large cycles and large industries are easy to grasp and invest in, with a high probability of success, thus achieving compound interest accumulation of capital."

"This is why I keep saying that when investing, you can choose not to buy stocks, but you must keep a close eye on the banking sector, because the waters there are the deepest and can hide capital giants, thus affecting the entire market."

After saying that, Li Feng took a sip of water and continued, "In fact, these cyclical fluctuations are like a game. Whether you choose to join the dealer's game and fight it, or choose to join Guo Jia's game and be a sedan chair, determines the success or failure of your investment."

“Many times, the route you choose from the beginning determines the success or failure of your investment.”

After listening to this, Su Xiaoxia felt that she and Li Feng and the others were not on the same wavelength.

Their stock trading is a bit too mysterious.

"Xinyue, um, I have something to do, so I'll leave first." Su Xiaoxia made an excuse and wanted to leave.

Zhao Xinyue sent her into the elevator.

Then she came back and sighed, "Look, you blew her away. If you have anything else to say, just say it all at once."

Li Feng thought for a moment and said, "Since you don't want to listen to boring theories, let me tell you which stocks you shouldn't touch."

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