Chapter 195: A bear-bull transition in one month?
The New Year arrives at the beginning of the first lunar month, and every household celebrates the New Year.
This year is indeed the first year after the official end of the epidemic, and the festive atmosphere in rural areas is particularly strong.
Although fireworks are banned throughout the city and district, villagers can still buy them through various channels.
This year, Li Feng brought Zhao Xinyue and her son back to his hometown to celebrate the New Year. The family sat together in the house, chatting and making dumplings. The child took the small firecrackers he had just received and blew them up in the yard, making a "bang bang" sound, and his little face was flushed with joy.
Soon, three large dumplings were ready. Mother Li cooked them and took them out of the pot. A string of firecrackers was hung up and lit. The bursts of "crackling" sounds gradually merged into the series of muffled thunder in the sky.
Afterwards, a sumptuous dinner, along with freshly-cooked dumplings, was placed on the table. The family chatted while eating the New Year's Eve dinner and watching the Spring Festival Gala, having a great time.
Before he knew it, several days had passed. During these days, Li Feng was either visiting relatives or on the way to visit friends, either eating and drinking or at a drinking party. He was busy and fulfilled.
As the saying goes, if you are poor in a busy city, no one will care about you; if you are rich in the mountains, you will have distant relatives.
The Li family has been living better and better in recent years, and more and more relatives and friends in the village have been visiting each other. Many people have inquired about the ways in which the Li family has become rich, but Li Feng has dismissed them one by one with the excuse of working in the media and using the Internet.
Because stock trading is really too difficult for ordinary people, let alone these farmers. It is conceivable that once they rush into the market, they will definitely end up as losers.
Li Feng naturally didn't want to push others into the fire pit, so as to avoid unnecessary trouble in the future.
There are too many examples on the Internet of people who have caused their relatives and friends to lose business because of recommending stocks to them.
After the New Year, the stock market officially opened amid the anticipation of many investors.
These days, the stock market has been in turmoil, which has been pulling the hearts of many inexperienced young investors again and again.
Many small investors with weak heart have not had a peaceful New Year, living in fear all day long.
Just after the Chinese New Year, the market has developed in an unprecedented way.
Just before the New Year, the Shanghai Composite Index had just fallen for six consecutive days, hitting a new low of 2635.09 points in this round of plunge, which crushed the bulls. After that, the Shanghai Composite Index pulled eight consecutive positive lines, directly rising above 3000 points! The short sellers were completely lost.
This is simply a super roller coaster market.
Subsequently, after a slight adjustment for just one day, the Shanghai Composite Index opened low and closed high on February 27, closing directly at 3015.48 points with a 1.29% increase, directly stabilizing above 3000 points!
A bull market seems to be coming?
In less than a month, the market switched from bear to bull?
The investors who missed the opportunity were stunned.
The shareholders who had sold their shares at a loss were so angry that they beat their chests and stamped their feet.
Investors with full stocks also feel a little confused.
During this period, several remarkable events occurred.
First, the Nikkei index hit new highs one after another, and the Dow Jones Industrial Average, S&P 500, and Nasdaq index in the United States also hit new highs. Technology stocks, especially the AI market, have been rising one wave after another. Nvidia soared 16% overnight, and its market value directly increased by US$260 billion, about RMB 2 trillion, and its total market value reached US$1.96 trillion.
It is equivalent to the total market value of the top ten A-shares.
This wave of AI speculation in the U.S. stock market, triggered by the seven technology giants, is comparable to the Internet bubble in 2001.
Second, the Federal Reserve postponed its interest rate cut expectations from March to May, and then from May to June, but my country's central bank exceeded expectations and lowered the five-year LPR by 25 basis points, further easing the monetary environment.
Third, under the main theme of "establish first and then destroy", several provinces and cities and major commercial banks have given the green light to real estate companies on the white list and allocated loans, including many well-known listed real estate companies. Some provinces and cities have allocated tens of billions of loans to the first batch of white lists, with an average of more than 300 million yuan per project.
This is like a blessing after a long drought for many real estate projects that have been suspended for several years. It will also slowly resolve the crisis in the real estate industry and save the real estate industry, which has been in a freefall since last year.
It can be said that during the New Year month, both domestic and foreign stock markets experienced ups and downs.
While celebrating the New Year, Li Feng recorded these events so that he could look back on them years later.
Xiao Bo cleared out his holdings last year and avoided the stock market crash before the New Year. Of course, he also missed the big surge of the Shanghai Composite Index from 2635 points to 3015 points.
He looked at the red stock market, feeling a little hesitant, a little scared, a little eager and greedy, and couldn't help but dial Li Feng's number.
"Li Feng, have you returned to City B?"
"After the Lantern Festival, I came back."
"The stock market has reached 3,000 points again today. I saw on the forums that a bull market is coming, but some people also say there will be a correction in a few days. I'm planning to buy some stocks. What do you think?"
"What stocks do you want to buy?"
"Well..." Xiao Bo was stunned by the question and hesitated for a long time before saying, "Every stock market has been rising these days. First, coal and oil stocks, then large-cap, small-cap, and even micro-cap stocks have all been soaring. I don't know what to buy. I see a lot of brokerages recommending AI, saying that there's an AI revolution going on abroad that will revolutionize the world. Nvidia's stock has also gone crazy. What do you think?"
Li Feng sat in his study at home, looking at the noisy forums and the bustling stock market, and said with deep emotion:
"I don't recommend investing in technology stocks, especially given the surge in overseas AI stocks. If you get involved now, you're likely to end up as the one taking over."
"When we invest in stocks, we must avoid speculative stocks because they are too uncontrollable, or the winning rate is too low."
"We should focus on long-term trading, or in other words, we should focus on predictable, risk-controlled, large-scale market trends and large-scale cyclical stocks."
"These big opportunities are like a tide of fish emerging from the ocean. Everywhere are opportunities for harvest and the joy of a bountiful harvest. As long as we choose the right timing, the right industry, and the right stocks, we can easily reap good returns."
"This is also the concept I've often expressed in forum articles before."
After a pause, Li Feng continued, "In the past few days, there have been continuous short squeezes and the market has generally risen."
"It's very likely that there will be a good market trend in the future. This kind of market trend generally has three stages. The first stage is a general market rise. The second stage is that the market sectors rise in turn. The third stage is that several sectors reach the top at the same time."
"What we need to do is, in the first stage, test the investor's overall perspective. At this stage, it is important to hold on to your stocks. The second stage tests the investor's patience. At this stage, investors must hold on to their stocks firmly. They must not be obsessed with other stocks and frequently switch stocks because other stocks are rising well. Know that as long as the stock industries and individual stocks you choose are of high quality, sooner or later your turn will come. The third stage tests the investor's mentality. At this stage, you must be willing to sell your stocks. This stage is the most difficult because greed is the hardest to overcome."
Xiao Bo nodded and said, "Yes, I didn't sell several times before when the price went up, but after a roller coaster ride, I ended up losing money. Li Feng, how do you sell stocks? Do you have any standards?"
"I don't have a very clear standard, but we can look at the market heat. Generally speaking, there are a large number of fund institutions pouring in, or a large number of retail investors buying, and it's on the "pig-killing" list. This is the time to sell, because at this time, the market is the most enthusiastic, the liquidity is the best, the trading volume is skyrocketing, and it is also the time for hunters to sell and hunt."
Xiao Bo hung up the phone.
Li Feng stood up, looked at the snow outside the window, and muttered to himself: "March is coming soon, can May be far behind?"
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