Chapter 198: The Future Has Arrived
"Why isn't it peaceful?" Li Fengyao looked at Xiao Bo with interest.
Xiao Bo coughed softly in embarrassment and said:
"Today, oil, gold, copper, and other nonferrous metals stocks all rallied. Zijin Mining surged 3.73% on strong trading volume, closing at 14.73 yuan, a record high. Tongling Nonferrous Metals also surged with massive trading volume, hitting the daily limit. Also, Luoyang Molybdenum, Aluminum Corporation of China, Tin Industry Co., Ltd., and Western Mining..."
"Look at Zijin Mining's rising K-line, it's almost at a 60-degree angle. And CNOOC, which has hit a new high, has its entire K-line rising at a 45-degree angle, and is about to rise by 50%..."
"The index is still hovering around 3,000 points, but oil and nonferrous metals stocks started to explode today. The market was smashed in the afternoon, and a large number of nonferrous resource stocks also fell significantly."
"Tell me, is today's movement considered unusual? Is the surge you mentioned earlier coming?"
Xiao Bo said a lot of words in one breath.
He was very excited.
Because, based on Li Feng's analysis, he had already bought some non-ferrous resource stocks, but they had been fluctuating up and down in the past few months.
Although he outperformed the overall market, he always lagged behind the coal and oil sectors, which made him a little upset.
For this reason, he often nagged Li Feng.
However, every time Li Feng said the same thing - "Hold on tight, hold on tight."
This time, the riot in nonferrous resource stocks directly gripped his heart.
He was anxious in his heart and his face showed anxiety.
Li Feng saw his expression, but he calmly set up the fishing platform and prepared to bait the bait while saying, "Stock trading is like fishing. You can't be impatient. If you are impatient, you won't get the hot tofu."
"Today's surge in nonferrous resource stocks is no accident. If you've been paying attention, you should know that Bitcoin has skyrocketed in the past few days, just one step away from a record high. Gold prices followed closely behind Bitcoin's surge, rising continuously and skyrocketing, directly breaking the 500 yuan mark."
“Now…it’s the turn of commodities…”
Xiao Bo was completely confused.
Li Feng continued to explain: "Whether it is Bitcoin, gold prices, copper prices, or other non-ferrous resource stocks, they are all responses to the Fed's interest rate cut cycle."
“Generally speaking, Bitcoin reacts the fastest, followed by gold and copper, and then other commodities…”
Xiao Bo has been pondering the Federal Reserve's monetary policy these days, and he is puzzled:
"But didn't you say that the Fed has been dispelling expectations of rate cuts? Has it been engaging in ambiguity management and expectations management? A few days ago, the Fed turned hawkish and said it would continue to postpone rate cuts."
Li Feng took out a fishing hook, put on the bait, and said with a smile: "The story of the boy who cried wolf can only be told twice. No one will believe it if you tell it more than once."
“The Fed has managed expectations several times. The reactions of Bitcoin, gold, copper, and other assets now tell us that what the Fed says is the emperor’s new clothes.”
“We pretend to believe they are wearing clothes, but in reality, we are preparing for them not to have clothes on.”
"Sit tight, hold on, and be patient."
Li Feng spoke quietly.
Xiao Bo listened, thought about it, and asked: "If there really is a market, will it be like another roller coaster ride like in 2021?"
"This time, it's different," Li Feng continued. "Although inflation abroad is high in 2021, our domestic monetary policy has already been tightening."
"In addition, you can recall that the Shanghai Composite Index reached around 3,700 points that year, and a large amount of funds were concentrated in stocks such as liquor, soy sauce, and pharmaceuticals. There was even a lot of capital in sectors such as banking, insurance, and real estate."
"Now, after three years of decline in the Shanghai Composite Index, a large amount of funds have already fled from these sectors, either actively or passively."
“Some are waiting and watching, some will never come back, but there is also a lot of smart money pouring into the coal and oil sectors.”
"In 2023, the coal and oil sectors will be the only ones that stand out and have already seen a profit effect."
"In 2024, as the Federal Reserve begins its interest rate cut cycle, not only will the coal and oil sectors benefit, but also commodities such as non-ferrous metals."
"In addition, in 2021, a large number of stockholders, including fund managers, were dismissive of coal, oil, and nonferrous resource stocks. After the baptism and lessons learned over the past three years, especially after the outstanding performance of the coal and oil sector in 2023, this will directly change their perception."
"Now, with the right timing (the Federal Reserve and the People's Bank of my country's interest rate cuts), the right location (the China Securities Regulatory Commission and other departments have been supporting the market), and the right people (investors and institutions are beginning to recognize the commodities sector), it's hard to imagine these stocks not rising..."
"In the past, coal was flying, today nonferrous metals are dancing, and the future has arrived."
"I still say the same thing, be patient, sit tight, and hold on."
Xiao Bo was so excited after hearing this that his mind was wandering.
For a moment, he wondered whether his position of 200,000 would double to 300,000. Then he wondered whether he should add more positions. Then he wondered whether there would be a major adjustment in a few days.
He was thinking about this and didn't catch any fish.
Li Feng knew that he had no one in his heart, so he didn't explain anything further.
For investors like Xiao Bo who have not experienced such a big cycle, it is better to let the market conditions and the funds in his account speak for themselves than to tell them a thousand times.
Facts are what educate people.
One day passed just like that.
March 8, 2024.
The Shanghai Composite Index directly pulled back yesterday's negative line and rose by 0.62%, closing at a new high of 3046 points after the New Year.
In the market, the non-ferrous commodity sector is in turmoil again.
Tongling Nonferrous Metals surged again by 7.95%, CNOOC surged again by 8.94%, once hitting the daily limit, Western Mining surged another 3.28%, hitting a new high in two years, China Aluminum, Luoyang Molybdenum, China Shipbuilding, Zijin Mining...
The market has once again demonstrated its choice with facts.
Xiao Bo looked at his own selected stocks and was overjoyed.
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