Chapter 225: The Colored Ones Don’t Kill the Nameless Ones

Before I knew it, the market closed.

Today, the Shanghai Composite Index fell slightly by 0.18%, and the ChiNext Index fell slightly by 1.08%.

It seems nothing unusual, but it has caused a huge stir in the hearts of investors.

Because, on this day, the non-ferrous metal sector represented by gold, copper and aluminum soared 3.34% against the trend, outperforming all the stocks in the two markets. A long-lost feeling seemed to return to the memories of many people.

Some financial websites have already posted the title: "Resource stocks VS non-resource stocks".

And recall the time of "track stocks VS non-track stocks" a few years ago.

Many stock investors began to make jokes under the post.

"I wish I had joined PetroChina earlier. Today I can only shed tears in vain..."

"If I had known that you were so good today, who in the world would not recognize you?"

“I was stunned by the artificial bull market and missed out on a lot of opportunities!”

"It hasn't even started to rise yet, how can it be called a bull market? It's just a correction. There's no bull market that only rises and never falls. Don't panic, there will be opportunities!"

Li Feng browsed through major financial forums and found that most investors were surprised by the rise in strong cyclical stocks, and not many people were talking about the coming bull market.

On the contrary, a lot of funds that missed the opportunity are still cautiously watching the key point of 3100 points, trying to judge whether the future will be bullish or bearish.

But is this the key?

Just like in 2020-2021, the Shanghai Composite Index rose to 3,700 points, but this could not prevent liquor stocks from soaring to the sky.

For a stock investor, making money is the first priority.

Your own holdings are bullish, so they are really bullish. Even if they are not bullish, they are still bullish.

If your own holdings are bearish, then they are bearish. Even if they are not bearish, they are still bearish.

While browsing, a joke came out and caught Li Feng's eye, making him sigh: "This generation of stock investors is really talented!"

The post is titled: "Don't kill nameless people if you have color"

The general idea is that after the surge in non-ferrous metals today, the three brothers of gold, copper and aluminum held a meeting to debate who is the hero of today.

Jin said, "I am the anchor of currency, a rare metal. Who can compare with my nobility?"

Copper said: "My demand is hard-core dual carbon standards, developing countries are rising, and my supply is insufficient exploration and production, and South America and Africa are in turmoil. Who can compete with me?"

Aluminum said: "I am a solid power and energy metal. I also have a 45 million ton iron cap quota limit! The demand is the fastest and the elasticity is the greatest! Can you compete with me?"

Tongjin sneered in unison, "Bah! What if your quota is canceled?"

Aluminum then secretly pulled Copper in, saying, "Brother, we're actually in this together. If you raise the price first, double it, then we can consider replacing copper with aluminum... Now, if the quota is released, won't both our quantity and price go up?"

Copper came to his senses and said, "Yes, that's the truth. We are one family, copper and aluminum! If everyone's prices go up, we will all go up together."

Jin sneered coldly, "So, the phrase 'stepping on your right foot with your left foot and taking off from the spot' refers to you two..."

At this moment, there was a "bang" and someone outside the door kicked over the chamber pot.

The three brothers shouted, "Who is it?! Tell me your name! We won't kill those without a name if we have color!"

After a long while, Li's younger brother timidly said, "Brothers, I know it. Its name is Growth, and its nickname is Track..."

The joke is very insightful.

It pointed out incisively that the surge in non-ferrous commodities is behind the fall of blue-chip stocks.

When a whale dies, all things come to life.

Today, Vanke A, the leading real estate stock, plummeted 3.65% and closed at 8.19 yuan, just one step away from 8 yuan.

Vanke A is a benchmark, a banner in the real estate sector, and a belief in the hearts of countless people.

Its collapse represents the end of an era and a stampede of capital flight.

The same thing happened to the insurance sector and many consumer stocks.

Nowadays, among the former star blue-chip stocks, real estate has completely fallen, consumer stocks have fallen from the altar, bank and insurance stocks are on the decline, and countless consumer stocks have been cut in half...

The only remaining faith is in the liquor stocks, Kweichow Moutai, which still stands at 1,715 yuan and refuses to fall.

Even though other liquor stocks have been halved or even halved again, only a fraction is left.

The advent of one era often marks the beginning of the end of another.

Capital's instinct to pursue profits never stops.

The rise of blue-chip stocks like banks, liquor, and insurance in 2016 was preceded by the collapse of tech and internet stocks in 2015.

This time, the rise of strong cyclical stocks that began in 2020 was based on the collapse of 2020 and the previous blue-chip stocks...

"Will this be a repeat of 2021?" Xiao Bo asked the question again.

"Different, completely different..." Li Feng shook his head slightly and thought, "Generally speaking, there are three differences..."

"First, from a macro perspective, domestic monetary policy was actually tightening in 2021... while liquidity was abundant abroad... This time, domestic monetary policy is easing, and foreign liquidity is also about to ease... The macroeconomic situation is much better than in 2021..."

"Secondly, in terms of capital, the 2021 stock market funds, including the thinking of stockholders, were all confined to blue-chip stocks represented by liquor stocks, new energy stocks, consumer stocks, and even real estate stocks, bank stocks, and insurance stocks... Mainstream capital at the time looked down on these big, dark, and cyclical stocks..."

"This time, after three years of continuous beatings from 2021 to 2023, the funds and investors whose minds were still trapped in those blue-chip stocks have been mostly eliminated, a small number have been reformed, and basically all have escaped..."

"If, following the example set by coal and oil stocks, we've already started treating strong cyclical stocks differently... well, some people have already written jokes about it and shouted slogans..."

"Third, in terms of company quality, many strong cyclical stocks, especially state-owned enterprises and central enterprises, have suffered heavy losses over the past decade or so. They dug countless holes. So when the industry improved in 2021, they began to make provisions to fill the holes, resulting in mediocre performance that year..."

"After the provisions made between 2021 and 2023... those holes have basically been plugged... In the future, with a lighter load, performance will naturally explode..."

"On the whole, whether in terms of capital or company quality, this cycle is theoretically larger and stronger than the one in 2021. There is a lot of money on the sidelines, especially the funds fleeing from blue-chip stocks, which are even more massive."

"I believe that as strong cyclical stocks perform well, they will attract more and more similar funds, thus starting another cycle. I just don't know what new names will be created this time, following the blue-chip stocks and track stocks, to be engraved on the historical monument of this round of strong cyclical stocks."

Upon hearing this, Xiao Bo sat down, downloaded several annual reports, and began to carefully study the future industry trends and the upcoming quarterly reports.

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