Chapter 113 The end of each year is the most critical time for investment
"I'm going to S City."
As he spoke, Li Feng's expression gradually relaxed. He walked slowly to the tea table and sat down.
"S City?" Zhao Xinyue was surprised when she heard that. Suddenly, she seemed to remember something and her expression changed. She asked, "Is there a result regarding your car accident?"
She was quite nervous.
Previously, because of this incident, Li Feng had suffered a cardiac arrest and narrowly escaped death. Afterwards, he inquired about this matter several times and knew that the matter was not simple.
Thinking of this, she sat beside Li Feng and looked at him with concern.
"Nothing, I just went to see an old friend. An old colleague of mine is getting married, so I went to take a look." Li Feng avoided the subject.
Lin Menghan hesitated for a moment, boiled the water in the teapot, and prepared to make tea.
"Is there really nothing wrong?" Zhao Xinyue was a little unconvinced.
"Really? We live in a modern society with cameras everywhere. What could possibly happen? Just be at ease!" Li Feng said with a forced smile. "I'm actually worried that something might happen to you after I'm gone."
"We? What kind of accident could happen to us?" Zhao Xinyue looked at Lin Menghan and asked back in surprise.
"I'm not talking about your life, I'm talking about your investment," Li Feng said seriously. "Xinyue, you've only been investing for a short time, your experience isn't deep enough, and your mind isn't calm enough. During the time I'm gone, if you have any investment issues, please discuss them with Menghan."
"As for Menghan, you have a calm personality and are very talented in researching individual stocks, but you should also be careful not to get stuck on just a few stocks. You should pay more attention and study the trends of the overall market, as well as the rise and fall of industries. Broaden your horizons."
Lin Menghan nodded, sat aside, picked up the brewed teapot, and poured a cup for each person.
Li Feng had something on his mind, so he just took a sip, then stood up and started to clean up.
Zhao Xinyue sat by the tea table, looking at Li Feng, feeling empty in her heart.
Before, she copied Li Feng's investment homework and relied on him a lot in life. Now that he was going south to S City, she felt that she had no one to rely on, and her investment and life had no goals and direction.
"Li Feng, before you leave, please help analyze the market trends. Otherwise, I will be unsure." Zhao Xinyue said after a while.
Li Feng opened the K-line chart of the Shanghai Composite Index, glanced at it for a few seconds, then turned back and said:
"The stock market crash has just passed, and many market makers are trapped in their stocks. You must not buy those theme stocks, as they are only for the upside and no return. As for blue-chip stocks, I have said before that they still need time to adjust..."
"How long will it take? Will we be able to make it in time before you get back?"
"It's still in time. The results will be known around December." Li Feng said after thinking for a while.
“Why December?”
Lin Menghan raised her head and looked at Li Feng, confusion in her eyes.
"Because around December, the Central Economic Work Conference will be held!" Li Feng said solemnly. "This conference is of great importance. It connects the past and the future, and it is something that every one of us investors needs to read and ponder over and over again."
"It's just a meeting..." Zhao Xinyue curled her lips, not caring at all.
Li Feng said seriously:
"Xinyue, this shows that you don't understand politics, economics, or investment."
"Whether you admit it or not, in our country, the government controls the greatest resources. Its every move and action has a huge impact on every aspect of society and will redistribute various factors of production. When you invest, analyze industries, and analyze the overall situation, how can you avoid the government?"
"The Central Economic Work Conference at the end of the year is particularly important for investment, as it coincides with the start of the annual food market and the month when public and private equity funds compete for annual investment rankings..."
Li Feng's words sounded grand, but also a little empty.
Zhao Xinyue also felt that it was a bit boring after hearing it.
Li Feng frowned, thought for a moment, and then said:
"Xinyue, you're still new to the market. Well, let me tell you two things. At the Central Economic Work Conference at the end of 2007, the tone was first set to prevent overheating and inflation, which directly triggered the bear market the following year... Similarly, at the end of 2008, the introduction of the 4 trillion yuan stimulus package and the emphasis on maintaining growth at the Central Economic Work Conference directly triggered the bull market the following year..."
After a pause, Li Feng continued:
"Now, with the domestic stock market crash and the economy sluggish, the key to solving all these problems lies in the Central Economic Work Conference at the end of the year."
"Not only value investors but also speculators of theme stocks will carefully study this. Sometimes, a policy reversal can directly change the trajectory of one, or even several, industries. Why was the 2015 bull market a frenzy for tech stocks? Why did restrictions on 'three publics' and the 'ban on alcohol' in previous years deal a near-destructive blow to the liquor industry?"
"It's all the same!"
“It’s all the invisible hand of policy.”
"The end of each year is the most critical time for investment, and the most important thing is to see the tone set by the Central Economic Work Conference!"
"When we invest, we must follow the trend and not go against it!"
"With the trend? Against the trend?"
Lin Menghan gathered her hair and poured a cup of tea for Li Feng. The Maojian tea was at the bottom of the teapot, tumbling up and down with the water flow, showing off its graceful figure.
Li Feng took a sip and a refreshing fragrance filled his lips, sweetened his mouth and warmed his stomach.
He looked at Lin Menghan and saw that she was wearing a white short-sleeved shirt and a black short skirt, which showed her intelligence and beauty, and was very attractive.
After calming down a bit, Li Feng continued:
"It's the time, the situation, and the fate. The trend is irreversible. Those who follow the trend will prosper, and those who go against it will perish!"
"In the economic field and the A-share market, ultimately, it is the invisible hand of policy that controls, directs, and creates various trends. We must be good at distinguishing these trends, analyzing their development, and choosing the right time to participate."
"We are just small retail investors, we can only follow the trend."
“There’s no other choice.”
"In the financial market, weakness is the original sin. You must clearly understand yourself so that you can fully respect and fear the market and not go against the trend."
Li Feng's words directly pointed out the essence of the market, which made Lin Menghan suddenly realize a lot.
Zhao Xinyue stuck out her tongue, curled her lips, and didn't take it seriously.
Li Feng looked at it, smiled bitterly and said nothing.
Many people do not believe these words.
Many people, perhaps born without belief in fate, do not admit their own weakness, and always think that they can destroy the world and control everything.
Unfortunately, the reality is that we are struggling in various "forces" without knowing it.
They can neither recognize nor understand these "trends", let alone follow the trend, let alone create momentum and take action.
When applied to the stock market, it means often going with the flow.
If you are lucky and the trend goes with the flow, you will make some money. If you are unlucky and the trend goes against you, you will lose money. In the end, you will be confused and have no idea why you made money or lost money. You will neither form your own trading system nor achieve the goal of stable compound interest, let alone achieve financial freedom.
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