Chapter 250 Bear Market Thinking and Bull Market Thinking
After five days of trading and being exhausted, Li Feng slept in nicely on the weekend.
As soon as he got up, a piece of news caught his eye, which surprised him.
First, Japan's stock price plummeted to below 158, and Ueda Kazuo had no intention of rescuing the market.
This...isn't there any resistance at all?
The Japanese yen plummeted, Japanese stocks soared, and the US dollar also rose. Why does this script look so familiar?
Is it possible that Japan is not satisfied with having lost 30 years and will continue to lose 30 years?
Very likely.
Last time, the eldest brother cut off half of his younger brothers, and suddenly found that the Soviet Union had sent blood food, so he moved his position.
This time, the eldest brother really couldn't cut any other parts of his body, so he could only continue to cut his younger brothers. Just bear with the pain. At most, you will have to eat less and wear less. The people's lives will be a little harder. As long as the eldest brother is well, it will be truly good.
This year, the Japanese yen has depreciated by 11%. If calculated from 2020 when 1 US dollar was exchanged for around 105 yen, the Japanese yen has depreciated by nearly 50% against the US dollar.
Just looking at these numbers, you can hear the "crackling" sound of cutting leeks.
The world's richest man, Balotelli, is an even more skilled investment master. It is said that he mortgaged his US dollar assets, issued a large amount of Japanese bonds, borrowed hundreds of billions of yen, and invested in the five major trading companies in the Japanese stock market.
Putting aside the success or failure of the investment, the Japanese yen debt has been halved in the past few years alone.
Now, Japanese stocks are being hyped up to new highs, and the market is in a state of excitement, having repeatedly broken through 34-year highs.
Just waiting for the old stock god to swing his knife and cut the leeks.
Second, Citigroup predicts that the Federal Reserve will cut interest rates in July.
Could it be that Blinken discussed something in private?
For example, is it convenient for the wealthy to come and play here with the Chinese?
It's quite possible.
In recent days, the Hang Seng Index has been unusually strong, surging 8.8% in a week. Overseas funds are gradually flowing back into Hong Kong stocks.
Third, the "Regulations on the Supervision of Former Employees of the CSRC System Buying Shares in Companies Planning to Go Public (Trial)" was released for public comment.
Zhongyuan Securities Co., Ltd. was ordered to make corrections.
China International Capital Corporation Limited was issued a warning letter.
ZJH Wu Qing said: "Industry organizations should further correct their business philosophy, return to their roots, and achieve high-quality development."
After browsing the financial information, it was almost noon before he knew it. Li Feng's stomach was growling with hunger, so he went to the kitchen to tinker with it.
After a while, several bowls of egg noodles were brought out.
After hurriedly finishing his meal and taking a short nap, Li Feng drove straight to the fishing spot.
There, Lao Chen and Xiao Bo had already started fishing and had a good harvest.
Old Chen pulled out a copy of City B's metropolitan newspaper from somewhere, and the headline on the front page of the financial section was a bright red chart of the stock market trend.
"Hey, Xiao Bo, look at this. The securities and real estate sectors that you looked down upon saw huge surges yesterday, especially the securities sector. Seven stocks including Guosheng Financial Holdings, Zheshang Securities, Pacific Securities, Founder Securities, and CICC hit their daily limit... The real estate ETF also rose by more than 5%..." Old Chen pointed at the content in the newspaper, glanced at Li Feng unnaturally, and said meaningfully to Xiao Bo.
Li Feng looked at the contents of the newspaper from afar and felt a burning pain on his face.
A few days ago, I was not optimistic about securities and real estate, but today these two sectors skyrocketed, which directly slapped me in the face.
A few days ago, I thought I should avoid the securities sector because of the need to "build a strong financial country" and carry out "financial supply-side reforms". However, today, the entire sector has skyrocketed due to the expected restructuring to build a national financial team.
I seemed to have guessed the beginning correctly, but not the ending.
Seeing that Li Feng looked a little unnatural, Xiao Bo advised:
"Old Chen, how can you say that? Everyone makes mistakes sometimes. Even the stock god can make mistakes sometimes. Didn't you see that Warren Buffett failed in the Indian market a few days ago?"
"But... not only does he look down on the securities and real estate sectors, he also looks down on sectors like liquor, consumption, technology, automobiles, and new energy... What if... he's wrong again?" Old Chen muttered to himself.
"What do you know? This is called being conservative. Safety should be the first priority in investment. Safety first, do you understand?" Xiao Bo retorted.
"Safety? Safety also has to take into account returns, right? Look, the securities sector is obviously in turmoil, and the market is about to come. If you make a mistake, how big will the loss be?" Lao Chen continued.
"How do you know the market is coming? Are you a god who can predict the future?" Xiao Bo asked back.
"you……"
The two of them started arguing with each other.
Li Feng sat nearby, listened for a while, and advised, "Actually, I think I should change my mind."
Change your brain?
When Lao Chen and Xiao Bo heard this, they were stunned. They didn't know why Li Feng said such a thing.
Li Feng touched his head unconsciously and said with a wry smile:
"The overall market is now at the end of the bear market and the beginning of the bull market. It can even be said that the bull market has already shown its tipping point through the performance of strong cyclical stocks, but my thinking is still stuck in the bear market."
"Bear market thinking means safety first. To put it bluntly, it means being disgusted with everyone and staying away from all risky stocks and places with trepidation."
“Bull market thinking is different.”
"Why is it different?" Old Chen asked anxiously.
This market has been bearish for three years. It has cheated him a lot. He has not had much chance to eat meat, and his body is covered with the marks of the bear's slaps.
As soon as I heard Li Feng talk about bull market thinking, I became interested instantly.
"Bull market thinking means ignoring logic and focusing only on growth," Li Feng recalled, turning his attention to the bull market ten years ago, from 2014 to 2015.
"The bull market described in Chapter 58 of this book was irrational. It came out of nowhere and the market rose suddenly."
"The catalyst for the bull market was the start of a cycle of interest rate cuts, which was bad news for banks and insurance stocks. But with the bull market underway, who cares? Instead, a few major banks dramatically dragged down the index, leaving you trembling with fear. Brokerage stocks, the flagships of the bull market, soared, doubling in value in just over a month. Tech stocks saw even more incredible gains, increasing by several times, sometimes dozens of times, in just a few months... ultimately sending the index to a peak of 5,178 points!"
"In fact, when I saw the surge in the securities and real estate sectors, I didn't feel any regret or jealousy. Instead, I was very happy. Because only when the bull market truly arrives and there is enough water in the big pool of A-shares, will our chances of profit be greater."
"I still believe that if a bull market comes, strong cyclical stocks will definitely outperform most sectors thanks to their continued improvement in performance and the fermentation of the big inflation theme. Or you can understand it this way: we need to prepare for both situations and choose sectors that can withstand a bear market and outperform in a bull market."
"Is the bull market really coming?" Xiao Bo's eyes lit up when he heard this.
Which stock investor does not desire and look forward to a bull market?
Only in a bull market can stock investors realize their dream of getting rich overnight and achieving financial freedom.
"I really don't know," Li Feng said with a wry smile. "I'm just a little moved by the fact that brokerages have skyrocketed. This situation has directly overturned my previous predictions. If a bull market really comes, we must adjust our previous bear market thinking to a bull market mindset."
"Bull market thinking means selecting stocks based on the thinking of the "leeks." According to the experience of the 2014-2015 bull market, the stock price should be low, the theme should be strong, the performance should be good, and the business should be imaginative..."
It's the weekend, and brothers, while you are taking a break, why not give out a free love generator?
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