Chapter 47: Traps Are Everywhere in a Bear Market
"Buy China Merchants Bank, one-third of the position."
Li Feng said, "It has fallen back to its mid-year price, with a price-to-earnings ratio of only 6 and a dividend yield of 3%. As can be seen from the just-released annual and quarterly reports, it remains the best bank in China, with a debt cost of only 1.91%. Among the Big Four banks, only the Agricultural Bank of China has a lower cost. Its core competitiveness remains, and its profits are still growing rapidly, providing a sufficient safety cushion."
As he spoke, Li Feng tapped on the keyboard and entered one-third of the position.
Lin Menghan followed suit and bought a corresponding position, asking, "Aren't you going to buy Kweichow Moutai?"
Li Feng called up the K-line chart of Kweichow Moutai and saw that it was still standing at more than 130 yuan, completely ignoring the ups and downs of the broader market, like a proud princess who never lowered her noble head.
Lin Menghan looked at the winding K-line of Kweichow Moutai, feeling both happy and worried. She couldn't help but ask, "What if Kweichow Moutai doesn't fall below 100 yuan?"
Li Feng shook his head and said, "When the big rivers have no water, the small rivers dry up. Right now, the national capital market is so tense that there's a 'money panic' going on. The Shanghai Composite Index has broken through 2000 points. There's panic, and all major sectors are falling. In the liquor sector, Wuliangye has fallen from 19 yuan to 16 yuan, and Jiugui Liquor has plummeted from 20 yuan to 15 yuan!"
"Kweichow Moutai, on the other hand, has been fluctuating around 135 yuan, neither following the broader market nor the sector."
"What does this mean?"
"This shows that there is capital supporting the market." Lin Menghan said thoughtfully.
Li Feng nodded and analyzed, "That's right. The purpose of supporting the market is to paralyze retail investors and cover up the capital outflow. Once the main force achieves its goal, it will make up for the drop and kill, trapping retail investors and making them stand guard."
"100 yuan is an important trading point for Kweichow Moutai for value investors. We analyze it with a gaming mindset and will definitely give it a try, regardless of whether we are bullish or bearish."
"Only when it's below 100 yuan can Kweichow Moutai's PE ratio be below 15 times, which meets our stock selection criteria. You must remember that in a bear market, you must not relax your stock selection criteria. It's better to miss out than to make a mistake."
Lin Menghan listened and seemed to be thinking about something.
In a bear market, there are silent traps everywhere.
The result of not buying stocks is just losing some time, but once you choose the wrong stock, you will lose your principal and even make irreparable mistakes.
Lin Menghan opened her red lips slightly and was about to say something.
Suddenly the phone rang.
Li Feng took out his cell phone and saw that it was a call from patient number two, Gan Yitong.
Could it be that their microfinance company is about to open?
After some hesitation, Li Feng answered the phone.
"Hello, Number Two, I'm Number One."
"Hey, brother, you are still so polite. How are you doing recently?" Gan Yitong smiled on the phone and seemed to be in a very good mood.
"Me? Hey, it's still the same as always, writing articles, trading stocks, and making a living." Li Feng replied.
"Look, I heard the stock market isn't doing well lately, so you'd better be careful," Gan Yitong said. "By the way, on the first of next month, our company will officially open on the Financial Pedestrian Street, right next to the Changzheng Securities branch. You'd better find some media reporters to come and support us..."
Gan Yitong was lying on a boss chair, turning around and chatting.
"This...well, no problem." Li Feng agreed.
After hanging up the phone, Li Feng looked at Lin Menghan and said, "A friend's company is opening on July 1st. You should also take the trouble to go there."
Lin Menghan thought for a moment and said, "Hmm."
After thinking about it, Li Feng called Wang Jiaji and Song Dongpeng again to keep in touch.
It is a common practice to invite reporters to this kind of opening ceremony. Generally, there are red envelopes for them to receive. Li Feng set the time and place in just half an hour.
Two days passed.
Li Feng changed into casual clothes and went straight to the Financial Pedestrian Street.
From a distance, I saw the door of a company called Hengtong Finance filled with flowers, and Gan Yitong was standing in front of the door, welcoming and seeing off guests.
"Hey, reporter Li, you're here. Please come in, please come in..."
"You're welcome, brother, you're welcome..."
Li Feng followed the receptionist's instructions, signed in, took the red envelope, and walked through the lobby to a meeting room.
Here, several old friends have arrived and are chatting with each other around a large conference table.
Li Feng looked around but did not see Lin Menghan. Only Yao Jiu was moving back and forth in the crowd.
"Brother Li, Brother Li, hey, sit here, sit here."
Yao Jiu stood up, invited Li Feng over, and handed him a bottle of water.
Li Feng took the water and asked nonchalantly, "Hey, Yao Jiu, Lin Menghan isn't here?"
Hearing this, Yao Jiu grinned and said, "Hey, Brother Li, I think Sister Lin seems to be interested in you. She's been coming to you every day these past few months."
"Don't be ridiculous. I already have a girlfriend. She came to me to learn how to trade stocks. She didn't have any other intentions."
After Li Feng finished speaking, he suddenly felt inexplicably happy and a little lost.
This made him startled.
He quickly calmed down and repeated, "Li Feng, you have a girlfriend. Li Feng, you have a girlfriend. You must not be a fickle and unfaithful person."
When Yao Jiu heard about stock trading, his eyes lit up again and he asked, "Reporter Li, what stocks are you trading recently?"
"Well... I bought a little from China Merchants Bank. I plan to do some value investing." Li Feng told the truth.
"Value investing..." Yao Jiu frowned.
In his impression, value investing is a very boring investment method that means holding on to your stocks and not moving at all like a turtle.
Suddenly, a young man stood up and shouted at Li Feng, "Yao Jiu, value investing makes money too slowly. You can't even trade twice a year. Yao Jiu, you should learn short-term trading from me."
"I'm telling you, short-term trading, if you just grab a hot spot and jump in, you'll double your money in a month or two! Look at this big bull stock I grabbed, Ourpalm, which is built on a restructuring and acquisition strategy coupled with mobile gaming..."
As he spoke, he took out his mobile phone, called up the K-line chart of Shanda Games, and placed it in front of Yao Jiu.
Li Feng looked at the young man in his 20s and felt a surge of inexplicable hostility coming towards him.
Beside him, Zhang Jiaji whispered, "Liu Bin, the young master of Qianlin Group, is one of Lin Menghan's suitors and just entered the market this year."
Li Feng suddenly realized.
It's the beauty's fault again.
In this materialistic age, the scarce resource of beauty means temptation and trouble.
"You've got it right. This stock hit four consecutive daily limit ups before the New Year, then traded sideways for several months. This was the main force absorbing funds and cleaning up the market. Now it's broken through five yuan, with both volume and price rising. The future is limitless..."
Liu Bin talked freely, "Did you see that? It's 9:21 now, and the call auction is underway. The market opened 3% higher. Look at all the buy and sell orders, hundreds of thousands of them..."
Yao Jiu stared at the red screen of his phone, his heart pounding. He asked, "Young Master Liu, where did all these orders for this stock come from?"
"It was made by the banker..." Liu Bin said in a very reasonable manner.
"What are you doing this for?" Yao Jiu asked.
"Show off your muscles and tell other funds not to go looking for profits in this stock," Liu Bin said. "Look at this, we must cancel the order before 9:25."
"Why?"
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