Chapter 33: The "Triple Kill" Trend of the Hidden Rules of the Stock Market
As a media worker, she had heard of the above events and news a long time ago, but she had never connected them with her family's business before.
At this moment, listening to Li Feng's story, I suddenly had an epiphany.
In addition, according to Li Feng, there were other reasons, which made her curious.
Li Feng sorted out his thoughts and continued:
"As we all know, the liquor industry has a ten-year cycle, and the peak of the previous cycle was in 2002. So even without these negative events, the profits of the entire liquor industry should have been declining..."
Zhao Xinyue reacted, her eyes lit up, and she said, "So, should we buy liquor stocks now?"
Li Feng shook his head and said, "No, the time is far from here."
"Why"
Lin Menghan frowned and asked, "Isn't it said that there are opportunities in crisis? The liquor industry is in crisis now, and it's time for us to buy at the bottom."
Li Feng did not answer but asked:
"Reporter Lin, I wonder if you've ever heard this joke? They bought at the bottom of the market and ended up in the basement, but they didn't realize there was another cellar beneath the basement, and beneath the cellar there was the earth's crust, and beneath the earth's crust there was hell, and there are eighteen levels of hell!"
"We all know the liquor industry is facing difficulties, but is this really the bottom for the industry? If you don't fully understand this, you absolutely must not buy at the bottom. Otherwise, you'll be stuck in the basement, sliding all the way down into the bottomless pit of hell."
Zhao Xinyue was fascinated by what she heard, so she turned down the heat of the induction cooker and let the boiling water boil slowly.
Lin Menghan was even more concerned, and her beautiful eyes unconsciously stared at Li Feng.
“When is the bottom?”
Zhao Xinyue was itching to get her hands on some money. After two investments in Minsheng Bank and Qinling Cement, her original capital of 20,000 yuan had increased to nearly 40,000 yuan.
I made a total of more than 10,000 yuan.
It's equivalent to her annual salary.
She was a little impatient and her heart became a little greedy.
Li Feng saw her anxiousness and said:
"Generally speaking, during an industry cycle adjustment like this, stocks will experience a 'triple kill' trend. The first step is to kill the stock price, often by half, or even by the thigh or ankle, leaving the stock price at a fraction of its value. The second step is to kill the valuation, also by at least half, completely squeezing out the bubble that was inflated in previous years. The third step is to kill the logic. We are currently in the second step, killing the valuation."
"The bottom is on the third step."
The "triple kill" story in the stock market is like the changing of the seasons, coming year after year and different every year.
The liquor, banking, steel, nonferrous metals, coal, manufacturing and even high-tech industries have all encountered this.
This "triple kill" trend is often accompanied by industry adjustments, business closures, and stock crashes. Just like all things wither in winter, only the most tenacious can survive until the spring of the following year.
"What is killing logic?" Lin Menghan frowned and looked at Zhao Xinyue.
Zhao Xinyue shook her head. She had never heard of this term.
Li Feng patiently explained, "Killing logic, to put it simply, means that investors have completely rejected this industry, completely distanced themselves from it, and completely stopped looking at it."
"Then...are we just waiting now?" Zhao Xinyue said hesitantly.
Li Feng shook his head and rejected it:
"Opportunities aren't something you wait for; they're something you seize. From now on, we must keep a close eye on the entire liquor industry to see when it will reach its trough in this major liquor cycle, who will rise from the ashes, survive, and who will simply fade into obscurity..."
"We must keep our eyes open and discern stocks. We should buy those that are growing against the trend during industry downturns and have bright futures, and stay away from those that are in industry downturns, in trouble, on the verge of bankruptcy, and struggling."
"This process may take months or even years..."
Lin Menghan swallowed unconsciously, her face pale, and said, "It took so long?"
She thought a lot.
If the industry adjustment is as pessimistic and tragic as Li Feng said, and if the adjustment lasts for several years, wouldn’t his family’s business be in great trouble?
I can’t imagine what will happen then.
At least, the house I live in should be gone.
Li Feng saw Lin Menghan's expression, pondered for a moment, and added, "This adjustment has been compounded by several negative factors, and in a bear market. The adjustment may be short, but it will be all the way through and even more devastating."
"This is a rare opportunity, Menghan. Can you arrange for me to meet your father and see what the current situation is in the liquor industry?"
Upon hearing this, Lin Menghan lowered her head in embarrassment.
Bringing a boy to meet my father is a bit embarrassing no matter how I think about it.
Zhao Xinyue rolled her eyes at Li Feng, feeling somewhat unhappy.
Li Feng thought about it and quickly explained, "Just say it's an interview with a reporter from City B's Metropolitan Newspaper."
"Um."
Lin Menghan responded, but she didn't know why she felt a little disappointed.
"Oh, the food is almost overcooked, eat quickly, eat quickly..."
Zhao Xinyue felt relieved, stood up, picked up the colander, scooped out all the vegetables and meat in the pot, and divided it into several people's bowls.
Lin Menghan took a few bites and suddenly felt extremely curious. She asked, "Reporter Li, where did you learn all this knowledge? You know more about our family business than I do."
Li Feng smiled and explained, "I learned all this by paying tuition in the stock market."
"Xinyue knows that my stock trading was really mysterious before, and I lost a lot of money. Later, in a fit of anger, I bought all the books available on the market and spent half a year reading them. Only then did I get some ideas."
"Later, I was trading stocks, thinking about it, and observing the market, and that's when I gained so many insights."
Zhao Xinyue suddenly felt a little sad and quickly interrupted:
"Menghan, don't listen to his nonsense. As long as you study hard, you will surpass him sooner or later."
Lin Menghan pondered in silence.
Li Feng stopped talking.
The three of them spent more than two hours on the meal.
After that, Zhao Xinyue pulled Lin Menghan into the bedroom and talked in private for a long time.
Li Feng was bored, so he turned on his computer and began to carefully study the recent trends of major liquor stocks.
Once you see it, you can’t take your eyes off it.
The leading liquor stock, Kweichow Moutai, hit a new high of 179 yuan in July 2012, and then went downhill all the way. Even the overall market boom could not stop its decline.
This decline lasted for half a year, and the price dropped to 120 yuan today.
The second largest liquor stock, Wuliangye, is even worse off.
From 31.26 yuan in July 2012, it has plummeted to 20 yuan today, a drop of 30%...
Jiugui Liquor, the epicenter of plasticizers, is the worst hit.
From 58 yuan in October 2012, after four limit-down days, it plummeted directly to 28 yuan today, a halving!
The future is even more unfathomable.
The situation for other liquor stocks was similar, with some being cut in half and some falling by around 30%, a devastating drop.
At the same time, the market soared all the way from 1949 points to more than 2400 points.
Such a huge contrast made liquor stocks the most despicable stocks in the forum, even more disgusting than the previous ones, and became the target of public criticism.
After all, if you buy blue chips, you will lose money too, but the loss will not be much, and there is also psychological comfort.
But if you buy liquor stocks, others eat the meat, but you not only can't even drink the soup, but you also have to suffer the most severe beating, which is unbearable for investors.
They fled in droves, cursing.
A popular post was pinned to the top of Taoguba.
————
Move your lucky hands and send a wow for free for love.
Your support is my motivation to update
Continue read on readnovelmtl.com
