Rebirth of the Capital Legend

"The market is evolving, and the trading model must evolve as well," Xu Qiao said. "Now, the key is how to evolve."

Lao Zhang thought for a moment and said, "In an extreme bear market, I don't think it makes sense to study this. Since Brother Su no longer does short-term trading and has turned to the so-called 'value investment' model, investing in blue-chip stocks and high-performance white horse stocks, why don't we just follow suit?"

"Old Zhang's idea is quite convenient." Old Wu laughed, "Indeed, the most convenient way is to work with Brother Su's Huayi Capital. In fact, in a bear market, it is completely meaningless to pursue excessively high absolute returns. The most important thing is to protect the principal and pursue stability."

Brother Chen deeply agreed with what Lao Wu said, and responded with a smile: "Lao Wu is right. When the short-term market ecology is very bad and you lose money seven out of ten times, you should avoid making moves when the short-term ecology is bad. Instead, you should choose a trading model with a low risk appetite, with the fundamental condition of preserving the principal and controlling profit drawdown, and patiently wait for the short-term market ecology to improve."

"Listen to what Brother Chen said..." Xu Qiao said, "Brother Chen, are you ready to give up short-term trading?"

Brother Chen responded: "Since the investment style and trading direction of the market are obviously changing, and the stock of funds in the market that continue to do short-term trading and short-term speculation is decreasing, and the cruelty of the game is getting higher and higher, then at this stage, there is naturally no need for me to persist."

"I agree." Old Wu nodded and replied, "It is a wise choice to stay away from the areas with the most serious losses."

Lao Zhang thought about it and said, "Since Brother Chen and Lao Wu both think so, I will also reduce short-term trading and the number of times I make moves."

"Well." Old Wu continued, "It's always right to follow the direction where the main market funds are concentrated."

"If we want to change our trading ideas and investment style..." Xu Qiao pondered for a moment and said, "I feel that the 'big infrastructure' line is more stable, right? After all, judging from the current market valuation and fundamentals, the core leading stocks of the 'big infrastructure' main line-related sectors such as real estate, steel, coal, nonferrous metals, building decoration, and building materials, which have just gained the consensus expectations of the main funds in the market, have relatively low valuations and their stock prices are still at historical lows. As for the others... the core stocks of the pharmaceutical and consumer sectors, which are heavily favored by the main institutions in the market, have long since walked out of the deep pit during the stock market crash and have generally rebounded by more than 30% to 50% from the bottom.

The market was originally in a bear market period with low investment risk appetite.

The overall market valuation decreases as market turnover decreases and investment risk appetite decreases.

Well, when the main funds have already gathered together and profit-taking has been concentrated, it is obviously not advisable to chase the core leading stocks in the pharmaceutical and consumer sectors.

After all, in a bear market, the valuations of these stocks cannot return to the levels of the bull market.

If you look at it this way...

I feel that at present, only the core leading stocks in the main sector of "big infrastructure" have the value of medium- and long-term investment and the cost-effectiveness of heavy holdings. "

"Based on the trends of the main lines of the entire market and the performance of the relevant core stocks, this is indeed the case." Lao Zhang said, "And the main line of 'big infrastructure' feels that our A-share market and the Hong Kong stock market have also shown signs of continued linkage. Taking all factors into consideration, in terms of investment cost-effectiveness, apart from short positions, the core line of 'big infrastructure' is indeed the most suitable for building positions."

"There are quite a few core leading stocks related to the 'big infrastructure' theme..." Brother Chen said with a smile, "What about the specific targets? Which stocks do you think are promising?"

Xu Qiao responded: "From the market trend in recent days, the strongest performers on the market should be 'Golden Land Group', 'Poly Real Estate', 'Jincheng Coal Industry', 'Conch Cement', 'Oriental Yuhong', 'Huaguo Zhongye', 'Yunnan-Guizhou Copper'... these stocks."

"There are also Hong Kong stocks such as Evergrande Real Estate, Rongchuang Real Estate, and Jingcheng Holdings." Old Wu added, "Relatively speaking, it seems that these domestic real estate stocks in the Hong Kong stock market have higher future expectations and stronger stock price elasticity, and their current market valuations are also lower than those of several leading real estate stocks in the A-share market."

"I think the check from Conch Cement is pretty good." Lao Zhang said with a smile, "The company's operating radius is concentrated in the Yangtze River Delta region, and the Yangtze River Delta region is the region with the strongest economic development explosiveness and the most concentrated wealth in my country. If the industry develops, the performance elasticity of this company should be very high, and its current valuation and stock price are really cheap. At the same time, there are no obvious institutional holdings in the early stage, which means that the fundamentals of this check will completely reverse in the future. Various institutions have a strong desire to allocate to this check. If they intervene with a heavy position at this time... they can wait for the subsequent institutional funds to help lift the sedan chair."

"They're all good." Brother Chen said after listening to the opinions of several people, "You can choose to allocate some evenly."

"Hehe, that's exactly what I was thinking." Xu Qiao saw that his thoughts coincided with Brother Chen's, and said with a smile, "But we still have to wait and see today's market leaderboards before we decide."

After saying that, Xu Qiao glanced at the time and immediately turned his attention to the Dragon and Tiger List interface of the two cities.

At a time when several core figures of the 'Magic City Ultra-Short Gang' have expressed their views on the recent market, and are planning to follow Su Yi's example, change their trading ideas, embrace blue-chip weights and high-performance white horse stocks, and follow the direction of the market's core main funds and core main line hot spots.

In the market, other retail investor groups gather in stock investment forums.

There is also heated discussion about the recent market trends and the day's big positive line trend.

"I feel proud, I feel proud, today we finally see a general rise in the market."

"It's only the 'big infrastructure' sector that's rising, right? There are also traditional sectors like medicine, consumption, and finance? 'Emerging industries' sectors like 'mobile internet', 'film and television media', 'consumer electronics', 'semiconductors', etc., haven't risen much. Sigh... It's really a market cycle. Traditional energy, ferrous metals, and big infrastructure sectors, which were previously ignored by no major funds, have become popular with funds competing for them recently."

"Isn't it said that the steel and coal industries have serious overcapacity and many companies have long been insolvent? Why are stock prices rising continuously?"

"The worse the company's performance, the higher its stock price. Isn't this the characteristic of our A-share market?"

"I feel it has nothing to do with performance, but a matter of chips. The steel, coal, nonferrous metals, and real estate sectors have fallen sharply in the early stages, and the chips are completely broken. It is easy to pull them up, so the funds did it."

"What I mean is... the current market logic of the main line of 'big infrastructure' is still an oversold rebound?"

“I feel like it’s an oversold rebound.”

"Isn't it said that the market is driven by the policy of 'supply-side structural reform'?"

"The steel and coal industries have such serious overcapacity. Is 'supply-side structural reform' useful? Besides...what room for imagination is there for traditional industries like these?"

"What about real estate? Is it also rebounding from an oversold situation?"

"The logic of the real estate sector seems a little different, right? After all, house prices in major cities around the world are indeed continuing to rise."

"Real estate should be called valuation repair. After all, the previous market bias towards the real estate sector was really too great."

"Valuation repair is one aspect, and the reversal of industry fundamentals is another, right?"

"Isn't it because the main fund product 'Hua Yi Yuan Zheng No. 1' managed by President Su has recently increased its holdings in traditional industry sectors such as 'real estate', 'nonferrous metals', 'coal', 'steel', and 'cement', thus bringing about speculation? There is no long-term logic. In my opinion... it is just short-term speculation."

"Short-term speculation? Doesn't it look like it?"

"Yes, short-term speculation, large funds in the sector, can there be a net inflow of 20 to 30 billion every day?"

"It means that there are indeed major funds that are shifting positions to traditional sectors such as real estate, nonferrous metals, coal, steel, etc.?"

"This is a sure thing. Market trends and capital flows cannot deceive anyone."

"Is it possible that the main funds in recent days are just funds that follow the trend and speculate, and when the short-term sentiment subsides, these funds will withdraw."

"No way? It looks like long-term funds are building a position!"

"I always feel that traditional industries such as real estate, steel and coal are unlikely to break away from the independent market trends of the previous consumer and pharmaceutical sectors."

"I also feel that the investment logic of these traditional industry sectors is much worse than that of consumption and medicine."

"But it doesn't seem like Mr. Su is the only one who used his trading seat to force the market, right? Besides...if there is no underlying logic in these traditional industry sectors, why would these big funds follow suit on a large scale? Why would they help the 'Hua Yi Expedition No. 1' fund headed by Mr. Su?"

"I don't know about steel and coal, but at least the real estate sector has certain expectations."

"House prices in offline cities have risen by 50%. The share prices of the core leading real estate stocks in the real estate sector should also rise by at least 50%, right?"

"If house prices across the country generally rise by 50%, then real estate stocks will definitely rise by more than 50%."

"No matter what, the current leading stocks in the real estate sector are definitely worth investing in."

"That's for sure. Otherwise, would Boss Yao spend tens of billions of dollars to forcibly seize the equity of Kewan Real Estate? Would he spend such a huge price to frantically buy Kewan Real Estate shares in the secondary market?"

"Based on the current share price of Kewan Real Estate, Boss Yao has already made a profit of around 100 billion, right?"

"Indeed, it's really amazing, easily making 100 billion in profit!"

"That's still not as good as Mr. Su's profit. Mr. Su can easily make tens of billions of profits."

"I feel that Mr. Su is the last bull in our A-share market. Basically all the major institutional funds in the industry, especially private equity funds, are reducing their positions and maintaining a low position operation trend. Only Mr. Su... still maintains a heavy long position in his main fund products."

"Isn't it the most important thing that Mr. Su is heavily invested in the long position and can always keep pace with the market?"

"Please note that it is not President Su who keeps pace with the market, but President Su who creates the market rhythm and the main market trend. For example, in the past six months, from the 'new energy industry chain' to the 'consumer liquor' sector, to the 'pharmaceuticals' main line, and now to the 'big infrastructure' main line, which main market trend was not discovered and brought out by President Su?"

"That's right. President Su's ability to discover the main market trends is really amazing."

"In the past six months, the market has been difficult to trade in, but it is also easy to trade in. As long as you follow the main line set by Mr. Su and don't chase the short-term market easily, it is basically difficult to lose money."

"I feel like Mr. Su is the main excavator in our A-share market!"

"As for these major institutions in the market, I have to say... a lot of thanks to Mr. Su. If Mr. Su hadn't discovered these main opportunities, the market might have been in a worse trend."

"From this perspective... could the core theme of 'big infrastructure' also become the next core theme of consumption and medicine?"

“We can’t say it will definitely become a reality, but it is definitely necessary to keep paying attention.”

"It depends on the follow-up attitude of major institutional funds. If a large number of major fund groups continue to follow suit and build positions, then it will be a natural thing for the core theme of 'big infrastructure' to come out."

As countless retail investors on the forum discuss the market conditions and speculate on the development of the main market trends.

Soon, it was 5 o'clock in the afternoon.

At this time, the Dragon and Tiger List data of the two cities were announced.

It was seen that there were heated discussions on the online stock investment exchange forum and in the internal groups of hot money circles across the country.

In an instant, countless eyes quickly turned to the Dragon and Tiger List of the two cities that had just been released.

When everyone's attention was focused on the newly updated Dragon and Tiger List, looking for the seat of 'Huaxin Securities Magic City Financial Street Fuxing Road Branch'.

However, this seat with great influence did not appear on the Dragon and Tiger list of buying and selling seats of major stocks today.

On the contrary, it indicates that the institutional seats of the market's public offering funds appeared in large numbers in the core leading stocks bought by the "Huaxin Securities Magic City Financial Street Fuxing Road Branch" yesterday, and they all showed a net buying trend.

Moreover, in addition to the core stocks of the "big infrastructure" main line purchased by "Fuxing Road" yesterday, many institutional buying seats have appeared.

The entire main line of "big infrastructure".

There are also many institutional seats among other stocks on the list.

"Why are there so many institutional seats?" Zhao Qiang, an active member of the 'Yuhang Group of Major Hot Money', was obviously surprised when he saw that several stocks on the Dragon and Tiger list had institutional buying signs on the buying seats. "Could it be that the main line of 'big infrastructure' is really going to have a big market?"