Chapter 181: Decisive Battle, Periodic Table
The Federal Reserve's interest rate cuts, coupled with the United States' crazy money printing, extended its plundering claws to all physical assets through currency, and quickly triggered the greatest inflation of the century.
The CPI in the United States soared from 1.4 in January 2021 to 5 in May, and then soared to 7 in December, setting a 40-year high!
Shocked the world!
The stock market often leads the real economy by about half a year. Against the backdrop of sharply rising inflation in the United States, commodities such as copper, aluminum, tin and zinc in the futures market have continued to soar.
Especially during the Spring Festival in 2021, the turmoil in the international futures market was directly transmitted to the domestic futures market.
Starting from February 4, Shanghai copper price rose from around 57,400 to 70,740 in one breath, a surge of 13,340, or 23%!
Shanghai Aluminum also rose from around 15,000 to 17,695 in one breath, a surge of 18%!
Shanghai tin rose from around 165,000 to 199,470, a surge of 20%!
After a brief pause, during the May Day Labor Day holiday, the international futures market repeated its old tricks and launched another surprise attack.
All major futures market products skyrocketed, directly triggering a second round of crazy surge in the domestic futures market.
Shanghai copper prices soared from around 73,000 to 78,270.
Shanghai aluminum soared from around 19,000 to 20,445.
Then, in August 2021, with the further rise in the US CPI, commodities ushered in a third surge!
One wave has not yet subsided when another wave comes, and it seems that the rise in commodity prices will never stop.
In the A-share market, stocks in related sectors have soared.
Zijin Mining, the leader in nonferrous metals, has unknowingly soared from more than 3 yuan in 2020 to 15 yuan, nearly five times.
Chalco's stock price soared from 2.7 yuan in 2020 to 5 yuan, and later hit a new high of 10.23 yuan! This is about a four-fold increase.
Tin Industry Co., Ltd. also soared from around 8.5 yuan in 2020 to 26.3 yuan, an increase of about three times.
In addition, there are new energy concept mining stocks with even more astonishing growth.
A typical example is Ganfeng Lithium, which produces lithium ore.
It soared from around 50 yuan in 2020 to 224.40 yuan in September 2021. If calculated from 20.13 yuan in 2019, it has become a tenfold bull stock!
There is also Tianqi Lithium, which has increased nine times from 15 yuan in April 2020 to 143.17 yuan in 2021!
As for Yuntianhua and Xingfa Group, which are involved in the lithium iron phosphate concept and produce phosphate rock, their growth rates are even more astonishing!
Yuntianhua’s stock price soared from around 7 yuan in April 2021 to 35.31 yuan in just five months, a five-fold increase!
Xingfa Group also started to surge from around 14 yuan in April 2021. It took only five months to rise to 58.38 yuan, a four-fold increase!
There are also rare earth concept stocks that are producing rare earths and making huge profits and continuously rising, concept stocks of antimony production, concept stocks of potash production, and even steel stocks, gold stocks, silver stocks, tungsten stocks, and so on and so forth...
Once you touch the mine, you will take off.
Major investment institutions are urgently recruiting researchers with experience in cyclical stock research.
Some organizations even took out Mendeleev's "Periodic Table" and marked the listed companies corresponding to each element on it, intending to "decisive battle over the periodic table"!
The great inflation cycle has officially begun.
Liu Jihua has resigned from a public fund and established a private equity firm based on his accumulated connections and impressive performance.
However, the recent performance of some of the consumer stocks he bought at the bottom in 2020 has been very pessimistic, which makes him a little worried.
In particular, some holdings, such as China Merchants Bank, Gree Electric Appliances, Ping An of China, Kweichow Moutai, and Vanke, seem to have been abandoned by the market and have been falling continuously, almost wiping out the gains in 2020.
If no further measures are taken, once the price falls below the break-even point, a large number of investors will definitely redeem their shares, and as a result of the chain reaction, they will have to sell their holdings.
what to do?
what to do?
He pondered for a long time.
Suddenly, he opened WeChat and saw Li Feng, whom he hadn't contacted for a long time, and remembered the investment philosophy he had mentioned.
It seems that Li Feng has a thorough understanding of the macro trends. Why not ask for his opinion?
Thinking of this, he dialed Li Feng's number.
——
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