Chapter 276 This money is not something we can earn
Before I knew it, another week had passed.
Li Feng, Xiao Bo and Lao Chen came to the river to fish as usual.
When people reach middle age, they tend to be more open-minded about many things. If they want to continue taking risks, they can either try their luck in the stock market or just lie back and enjoy the good life – fishing, traveling, playing chess, working out…
"Hey, Li Feng, did you watch the futures market last night? It was really exciting!" Old Chen said excitedly just after casting the fishing line.
"A few days ago, there were rumors that IXM, a subsidiary of Luoyang Molybdenum Co., Ltd., was squeezed out of its New York copper futures market. Last night, the price of nickel skyrocketed by 6.48%, and Shanghai silver also soared by 6%..."
"This futures market is going crazy. Even the stock market has to admit defeat..."
Li Feng smiled, opened his mobile phone, and looked at yesterday's stock and futures market trends.
Thanks to yesterday's significant positive news from the real estate industry, real estate-related stocks surged in the stock market, with the real estate ETF surging 8.53%. Gemdale Corporation, Poly Group, and Vanke A all hit their daily limit...
Affected by this, copper, aluminum, zinc, lead and other varieties in the futures market also generally rose.
Many big Vs who have invested in, or are deeply trapped in, stocks related to the real estate industry chain breathed a sigh of relief and began to imagine the future with great excitement.
"See? If it doesn't work once, try it twice! There are plenty of ways to save the real estate industry! Real estate is the government's own son, we can't help but save it, we have to save it!" said a big V.
"Now is not a question of whether real estate stocks are good or not, but whether you have stocks in your hands," said another big V.
"Don't go against the policy. Only by following the country can you have a say. It was like this at the end of 2008, it was like this at the end of 2015, and it is like this this time as well," someone recalled.
"As long as it doesn't get up, we will keep rescuing it and fishing it out until one day it gets up! We have plenty of money and means!" said another stockholder.
Big Vs and stock friends were discussing the financial forum enthusiastically, and the messages from retail investors were also wonderful.
Some people analyzed people's demand and real estate supply, some said not to be happy too soon and be careful of getting bought at the bottom, and some argued about which real estate stock was the leader.
There is no consensus.
Xiao Bo held up his phone and exclaimed in admiration, "Tsk, tsk, Li Feng, have you seen this? The down payment only requires 15%, the lowest down payment in history, equivalent to seven times leverage to buy a house. Are you tempted?"
"Li Feng, haven't you always said that stock trading should follow policy? Those who followed the rescue policy in the past all got rich. Now the policy encourages buying houses and is helping the housing market. Li Feng, should we consider investing in some real estate stocks?"
"Real estate?" Li Feng was stunned for a moment, then looked at Xiao Bo's mobile phone, which showed a barrage of red real estate stocks, and couldn't help but smile.
"The real estate sector has been doing well these past few days, but even with all that growth, how much has it really increased?" Li Feng pulled out his phone and continued, "Vanke A has rebounded 50% from its lowest point, rising to 9 yuan. But at this price, if it wants to reach its 2021 peak of over 30 yuan, it will have to double first and then increase by another 50%..."
"And Gemdale Corporation's stock price has risen from over 3 yuan to over 4 yuan, which is only a 30% rebound. To reach the 2020 price, it will have to increase by another 10 yuan..."
"besides……"
Li Feng wanted to continue speaking.
Old Chen was unhappy and interrupted, "Li Feng, stop talking. Real estate stocks are going crazy. Aren't you jealous? Aren't you envious?"
"Jealous? I certainly am. Who wouldn't be? That's around a 50% profit in less than a month. Some stocks, like the US-listed DUO, saw their price surge 321.26% overnight. That's a lot of money!" Li Feng sighed. "It's a shame, we can't make that kind of money."
"Why?" Xiao Bo asked.
"Because, if you want to seize this round of real estate market, the correct way is to know in advance the timing, intensity and even specific details of the relevant policies to be introduced, and then make arrangements and ambush in advance based on this information..." Li Feng explained.
"Take Vanke A for example. The best time to buy Vanke A is around April 20th, and the second best time is the platform period before May 15th..."
"However, as we all know, over the past year, despite a series of favorable measures from the government, Vanke A's share price continued to fall, from 20 yuan to 15 yuan, then from 15 yuan to below 10 yuan, and then from 10 yuan to over 6 yuan..."
"You have no way of judging when policies will be implemented, how strong they will be, or when to intervene. If you intervene too early, you risk being cut in half..."
"So, fundamentally speaking, this round of real estate market is actually a market based on insider information. You, me, and Lao Chen, don't have the channels to obtain this information in advance. So this is wealth that we can see but cannot touch."
Li Feng analyzed.
"No way, what if he is really rescued?" Old Chen said hesitantly.
Li Feng still shook his head and denied it:
"The past was the past, and the present is the present. The past was the upswing phase of the real estate cycle, and every pullback was an opportunity to increase holdings. Now is the downswing phase of the real estate cycle, and every rebound is an opportunity to sell."
"The current situation is similar to the 2008 bear market, when the stock market fell from 5499 points to around 1800 points and needed a rescue, as well as the 2015 stock market crash. This is just a policy bottom, aimed at alleviating systemic risks in the financial market, just as I wrote in Chapter 89, 'Working in Shifts to Spread the Losses.'"
"This is just a rebound, a policy bottom. There's still a market bottom to be found after this... No one can predict when this bottoming out will take place..."
After a pause, Li Feng continued:
"Maybe a few months, but more likely a few years, or even further declines in housing prices. The key lies in how to trade time for space, that is, using inflation to smooth out excessively high housing prices. In other words, how to increase people's income levels and reverse their expectations of housing prices..."
“This, in turn, involves the question of how to create the currency. This key issue should be addressed at the July meeting.”
"Remember, first establish and then destroy. After establishing, you still have to destroy."
Q&A with stockholders:
"Ouni-chan": Aren't there a lot of falsified performance reports? How accurate is this performance report as a basis for judgment?
It is possible that the performance of individual stocks may be falsified, but it is impossible for the entire sector to be falsified.
Therefore, when making decisions, we should focus on industries rather than individual stocks, and shift the focus of investment toward state-owned enterprises and central enterprises.
It's the weekend, and stock friends are urging for updates and showing off their love...
Your support is my motivation to update.
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