Chapter 185 2023, Survival in Despair
A year is a long time.
A year is a short time and it passes in the blink of an eye.
Li Feng was drinking coffee and browsing the stock market and financial trends in his study.
In the past 2023.
The Federal Reserve raised interest rates by 25 basis points in January, March, May and July, respectively, directly raising the interest rate to between 5.25% and 5.5%.
The domestic central bank's monetary policy continued to be loose, with the deposit reserve ratio lowered twice and interest rates cut three times. It also fully relaxed real estate control policies in cities including Beijing and Shanghai.
No more purchase restrictions, no more loan restrictions.
However, the expectation of price increases in the real estate market has unknowingly turned into an expectation of price reductions, and houses in countless cities have started to fall in price?
Many homeowners still get no interest even if they reduce the price by 20%, 30% or even 40%.
The housing prices in City B have fallen directly to the prices in 2017, and transactions continue to be sluggish.
In some areas, housing prices, especially in third- and fourth-tier cities with large population outflows, have even been halved.
During this year.
Zijin Mining rose 27.25%, Aluminum Corporation of China rose 26.17%, China Tin Corporation rose 2.42%, and China Shipbuilding rose 32.22%.
Zhao Xinyue looked at the insignificant increase and muttered, "I've been holding it for a year, and it only increased this little?"
Li Feng tapped lightly on the keyboard, calling up a set of data, and sighed, "Some of the increase is good, but how much more do you want it to increase? Don't you even look at how much the CSI 300 fell in 2023?"
As he spoke, Li Feng clicked on a set of data.
In 2023, the Shanghai Composite Index fell 3.7%!
However, the CSI 300 Index, which represents the market's blue-chip stocks, has been falling for three consecutive years.
Many investors were faced with despair in despair.
More investors have spent three full years in despair, and there seems to be no hope for the future. Some have lost 40%, some have lost 50%, and some have lost even more.
Almost every financial forum is filled with the dissatisfaction and resentment of retail investors.
Because, in the past three years, blue-chip stocks have collapsed, and the once-glorious funds have fallen from their pedestals one by one and returned to their original form.
A large number of investors began to redeem their funds.
This year, the photovoltaic and new energy sectors collapsed collectively, the liquor sector was completely decimated, and the real estate sector plummeted to the bottom of the abyss...
After Ganfeng Lithium plummeted 31.75% in 2022, it plummeted another 37.42% in 2023!
After Tianqi Lithium plummeted 26.18% in 2022, it plummeted another 26.27% in 2023!
AP Energy Technologies plummeted 69.61% in 2023!
Dexin Technology plummeted 67.62% in 2023!
…
In the liquor sector, Kweichow Moutai fell slightly by 0.06% after falling 15.76% in 2022!
But other liquor stocks were not so lucky, and each one fell worse than the other!
After Wuliangye fell 23.71% in 2021, it fell another 18.85% in 2022, but unexpectedly it fell another 22.35% in 2023!
Jiugui Liquor's stock price rose by 36.15% in 2021, but plummeted by 34.54% in 2022 and another 46.29% in 2023!
Shede Wine soared 166.03% in 2021, but plummeted 29.97% in 2022 and another 39.25% in 2023!
In this competition of misery, the real estate sector is the worst off.
The leading company, Vanke A, fell 31.15% in 2021, fell 7.89% in 2022, and plummeted 42.53% in 2023!
Gemdale Corporation fell 3.93% in 2021, then fell 21.13% in 2022, and then plummeted 57.38% in 2023!
Poly Development fell 1.2% in 2021, 3.20% in 2022, and plummeted 34.57% in 2023!
If this is the case for leading enterprises, the decline of other small real estate developers is even more tragic and horrible.
Sunac China plummeted 36.63% in 2020, directly from HK$49.55 to HK$28.65. Many people thought that the drop was enough, but they did not expect that it would plummet again in 2021, by 55.80%, directly from HK$28.65 to HK$11.78!
Cut in half!
I thought it had been cut in half twice and was safe.
However, no one expected that in 2022, Sunac China would plummet by another 61.12%, directly from HK$11.78 to HK$4.58, which is already a fraction of the highest point and the price is halved.
Many investors thought they could buy at the bottom and started buying.
However, I didn’t expect that in 2023, the stock price would plummet by 67.25% again! It plummeted directly from HK$4.58 to HK$1.50!
Even worse is China Evergrande.
From over HK$30, it plummeted all the way, and in 2023 it plummeted another 85.76%! It has now reached HK$0.235, on the verge of delisting...
There are many cases that are even more tragic than China Evergrande.
For example, real estate companies such as R&F Properties, Sunac China, Taihe, and Jiakai have already fallen below their face value and have been delisted.
This tragic fall made Zhao Xinyue shudder.
She clearly remembers how prosperous these companies were seven or eight years ago, especially in 2017, and how profitable they were. It is no exaggeration to say that they were sought after and envied by everyone.
Even many companies, such as Sunac China and Evergrande, have been crowned the national real estate sales champion and among the top three in sales several times!
However, I did not expect that after only a few years, it would become such a situation. It is really sad to see the situation change so drastically.
"How could this happen?" she murmured to herself.
"This is the power of cycles," Li Feng explained. "When a cycle comes and the wind blows, even pigs can fly to the sky. But when the cycle is over and the wind dies down, everything will fall down..."
"Those with good physiques can survive a bad fall, but those with poor physiques will die instantly..."
"So, I've repeatedly said that you must study the macroeconomic trends and must not go astray by buying stocks in a declining cycle. If you had bought real estate or liquor stocks last year, no matter how powerful you were, you would have lost more than you won. If you had bought coal stocks last year, no matter how mediocre you were, you would have at least outperformed the index..."
"Then which sector's stocks should we buy in 2024?" Zhao Xinyue asked.
——
Fellow stockholders, please use your hands to make money and send one to your love friends for free.
Your support is my motivation to update.
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