Chapter 142: Hidden Rules of the Stock Market, Strong Stocks Fall

It was Xiao Bo who called.

"Xiao Bo, what's wrong?"

Li Feng asked casually while overlooking a father and daughter swinging by the lake.

"Hey, Li Feng, are you free? Can you help me look at a stock?" Xiao Bo sighed on the other end of the phone.

"Xiao Bo, are you still trading stocks?" Li Feng asked.

"Oh, please don't say that," Xiao Bo regretted.

"Originally, after Dongdong's incident, I cleared out my holdings and stopped playing. Later, a friend insisted on recommending some stocks to me, and I couldn't resist, so I bought some. I didn't expect it to hit the daily limit twice in a row, so I added another hundred thousand yuan. However, I didn't expect it to fall so much in the past few days, and it kept falling..."

"What stocks?"

"Storm Technology."

"Then... wait for me for a moment." Li Feng sighed in his heart and returned to the study in the house.

Storm Technology was the super monster in 2015. Its issue price was only 7.14 yuan, but it hit 55 daily limit ups in a row, reaching a sky-high price of 327.01 yuan!

Back then, I used ten times leverage to buy new stocks and won two lots. I sold one lot at 150 yuan and made more than 70,000 yuan. At that time, I thought I had made a lot of money, but I didn't expect that it would soar and directly hit 327.01 yuan.

"drop-"

The computer was turned on, and Li Feng called up the K-line chart of Baofeng Technology.

It has been adjusted around 60 yuan since last year. There were two times in July and August when it hit the daily limit twice in a row. Xiao Bo should have bought it at that time.

However, the stock price never went up again after that. On December 12, it fell to the limit down with large volume and directly dropped to 51.62 yuan. Since then, it has continued to fall to around 46 yuan.

Storm Technology is a heavily-held stock by institutions and a strong stock in 2015. At its peak, it was held by at least 20 institutions.

Now they are fleeing after the breakout and selling at any cost. Why?

Li Feng couldn't help but open the K-line chart of LeTV. This stock was also a strong stock in the past and a favorite of institutions, but its trend was even worse.

In the past few days, the platform of around 47 yuan, which had been built for a year, was directly broken through and fell to the current 35.8 yuan.

Following the trend, Li Feng opened the trend chart of the ChiNext Index, which also showed a continuous decline. From the 2200-point platform, it dropped to 1963 points in just one month. Especially on December 12, it fell by 5.5% with large volume.

The retail investors were directly suffocated.

Normally speaking, the best solution for institutions to work together is to tacitly maintain the stock prices of these stocks within a certain range and let them fluctuate back and forth.

This not only avoids redemptions by fund investors, but also allows for the normal collection of management fees. It can also lull retail investors who have relaxed their vigilance into a steady stream, allowing them to either take advantage of a rebound or take advantage of the price difference to provide liquidity.

It can be said to kill three birds with one stone.

This also led to the fact that institutionally-held stocks, represented by LeTV and Baofeng Technology, which were strong stocks in the early stage, were still able to stand up even after three stock market crashes. Compared with the highest point in 2015, they were only halved.

During the same period, stocks without any background plummeted, never recovered, and some even suffered a direct loss.

Now, these previously strong stocks have all plummeted and made up for the losses. It is obvious that someone has broken this rule and escaped from this prisoner's dilemma.

Got ahead.

There are only two possibilities: either they have to sell stocks to cope with large redemptions, or they have found new business, new opportunities, and this new business is big and attractive.

Naturally, Li Feng thought of the arrival of the financial cycle.

The people who operate in institutions are basically all trained in finance. They cannot be unaware of or ignore this classic financial cycle.

Nowadays, the expected yield of 10-year treasury bonds has been below 3 for a whole month, and the ChiNext Index has also been falling for a whole month.

Is this a coincidence?

It can't be a coincidence.

The stock market has always had strong stocks that have fallen, and the reason why the stock market has bottomed out is because of the alternation of the old and new cycles.

A new cycle is slowly coming, bringing with it the hope of spring, where the grass and trees are flourishing, cattle and sheep are everywhere, fruits are plentiful, and gold is everywhere.

Naturally, hunters would abandon the old cycle of snow-covered, barren land and flock in.

If predictions are correct, starting from December, when the expected yield of 10-year Treasury bonds broke 3, smart money investors began to secretly adjust their positions, targeting the upcoming financial cycle.

If this is the case, you must speed up your plan to sell the house!

Because you don’t know when the market will come, maybe next week, maybe next month, but you must ensure that you have positions when the market comes!

Thinking of this, Li Feng immediately called Zhao Xinyue and said, "Xinyue, put the house under your name up for sale immediately! Immediately!"

Uneasy, Li Feng emphasized again: "Ask lower. Well, if you pay in full, you can save one to two thousand yuan per square meter!"

"What's wrong?! Li Feng, what happened?" Zhao Xinyue was eating wontons. When she heard Li Feng being so anxious and serious, she almost choked, thinking that something big had happened.

She silently calculated in her mind that the house she had invested in in Dongyuan Community was priced at around 13,000 yuan. It was 1,000 to 2,000 yuan cheaper per square meter, which meant it was tens of thousands or even hundreds of thousands cheaper.

She couldn't bear to do that.

"It's nothing. I'm just worried that the financial cycle is coming. We have to sell the house quickly. We can't wait." Li Feng urged.

"But, it can't be that much cheaper. In my opinion, 500 yuan is enough for the full payment. If it's too much, people will think there's something wrong with the house. Besides, people will buy the house after all. Even if you offer 2,000 yuan cheaper, they will still bargain for 3,000 yuan cheaper. There's no limit. You have to hold up the price a little bit to make the deal." Zhao Xinyue said.

"House prices can't double even if they rise," Li urged. "But once the financial cycle comes, there's room for them to at least double. We need to take advantage of the hot housing market and sell our house as soon as possible. If we're late, we might miss the opportunity."

Lin Menghan listened to it and said, "To sell the house, we can list a few more agents to facilitate the transaction."

"Well, that's fine too. It'd be best if we sold the house before the New Year. I'm afraid things might change after the New Year." Li Feng pondered for a moment, then added, "Now, I'll drive over to pick you up right away. Then we'll work hard, split into three groups, and list the house with all the big and small real estate agencies in the development zone."

Zhao Xinyue nodded and said, "Okay, we're in Wanda Plaza. Come over here. I'll order another serving of wontons and bring them to you."

"Yeah, see you later."

Li Feng hung up the phone and called Xiao Bo again, saying, "Xiao Bo, I suggest you sell Baofeng Technology and buy financial insurance stocks. Well, Ping An of China is pretty good."

"Ping An of China?"

"Well, this is just my suggestion. Of course, you still have to figure out how to do it yourself."

"Oh, let me see."

Xiao Bo hesitated for a moment and hung up the phone.

Li Feng knew that he must be hesitating.

Stock investors are all the same. When they suffer sudden huge losses, especially when they suffer huge losses for no reason, they will rush to seek medical treatment, but even after the doctor prescribes medicine, they often refuse to take it.

One reason is that when they took this medicine before, the disease not only did not get better, but it got worse. The other reason is that the two people had different perceptions and did not understand the investment logic behind it, so they did not dare to take it.

The reason Xiao Bo sought medical treatment just now was that he lost money in stock trading and wanted to find someone to talk to, vent his emotions.

After you have gone through this period of great losses, you will adapt psychologically, your body will naturally accept it, and your emotions will naturally stabilize.

This is also the reason why many people are not anxious, irritable, or sad after being deeply trapped.

Because, I have let it go and adapted to it.

After Li Feng hung up the phone, he went downstairs and drove to pick up the two people.

First, I went to Lianchuang Agency to find Fang Xiaoyu to list the property, and then listed the property with other real estate agencies in the development zone.

It was agreed that if the full payment was made, the price would be reduced by 300 yuan per square meter.

The radish is ripe without washing the mud.

The house was a popular two-bedroom unit, and the neighborhood was decent. It was sold within a week for 12,500 yuan. The buyer was responsible for the deed tax, transfer fees, expedited fees, etc.

When this house was bought, it was only 4,500 yuan per square meter, but I didn't expect that after just one year, the price would more than double. A house of 70 square meters would earn more than 500,000 yuan!

The yield rate reached an astonishing 600%!

There are many more.

Looking at this unbelievable figure, Zhao Xinyue muttered to herself, "If I had known that speculating in real estate could make so much money, why would I have worked so hard and worried about speculating in stocks? Wouldn't I have just bought a house?"

Lin Menghan was also greatly surprised and said, "No wonder there are so many people speculating in real estate, it's really making huge profits!"

Li Feng shook his head and said with a smile: "Who can predict the future? I also couldn't imagine that the housing market would rise so much."

"Now, let's look forward." As he said that, Li Feng opened his account, thought about it, and directly exchanged the more than 600,000 yuan into China Ping An.

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