The bustling stock market

The market has the momentum to launch a bull market

Recently, the market has experienced repeated fluctuations. As the historical bottom, 3000 points has many bottom characteristics. It will take time for investors to regain confidence. Policies that support economic recovery and stock market recovery are constantly being implemented. The current market has little room for downward movement, and the upward momentum is getting stronger and stronger. As the Sino-US relationship gradually eases and develops in a positive direction, investors' confidence is expected to gradually recover. Recently, the China Securities Regulatory Commission has introduced a series of policies to stabilize the market. The taps of funds flowing into the market have been gradually opened, while the taps of funds flowing out of the market have been gradually tightened or even closed. For the capital market, this means that the market has the motivation to launch a round of bull market.

On November 11, Qianhai Kaiyuan Fund held a 3 investment strategy report meeting more than a month in advance, hoping to speak out when market confidence is low and share investment opportunities in the 2024 market with everyone. Li Qiang, Chairman of Qianhai Kaiyuan Fund, delivered a keynote speech entitled "Strengthen Confidence and Steady Future in the New Round of "Long China" Horn". He said that positive market factors are continuing to speak out in many fields, the macro economy continues to recover, economic policies continue to exert force, the market bottom characteristics are becoming more and more obvious, and long funds are ready to go. At a time when China's economy and capital markets are recovering steadily, we must strengthen our confidence in the long-term improvement of China's economy, accumulate strength against the trend at the moment, adhere to long-term investment and value investment, and go long China to meet a better future. Mr. Wang Hongyuan, strategic consultant of Qianhai Kaiyuan Fund, delivered a heavyweight speech at the last minute of the strategy meeting. He believes that going long China stems from confidence in the long-term improvement of China's economy. The inherent basis of this confidence is a comprehensive analysis of the game pattern of global powers. At present, Chinese assets such as A-shares, Hong Kong stocks, Chinese concept stocks, RMB exchange rate, and Chinese bonds are generally undervalued. The market has the opportunity to recover in the future, and the opportunities in the Chinese capital market will gradually increase in 2024. I also delivered a keynote speech at the strategy meeting. Combined with the macro fundamentals analysis, I believe that the market may usher in a bull market in 2024. At present, the "policy bottom" has been found, and the "market bottom" has also been successfully found. Qu Yang, deputy general manager of Qianhai Kaiyuan Fund, believes that this is the starting point of a new round of bull market in Chinese equity investment and is full of hope for the future. The current combination of China's economy and the Federal Reserve's monetary policy is increasingly favorable to Chinese assets, whether it is A-shares or Hong Kong stocks. Whether it is A-shares or Hong Kong stocks, they have the foundation for a bull market under the current macro environment.

In the past decade, Qianhai Kaiyuan Fund has left a deep impression on the market with its accurate grasp of market trends. The unity of knowledge and action enables us to be bullish and do more at the bottom of the market, and boost market confidence with practical actions. According to statistics, as of the end of August this year, the cumulative subscription amount of Qianhai Kaiyuan Fund and its subsidiaries for its equity funds in 8 has reached nearly 2023 million yuan. Together with the 3 million yuan of self-purchase in the second half of 2022, the total amount of self-purchase by Qianhai Kaiyuan since September 2.8 has accumulated to nearly 2022 million yuan, ranking among the top among all public fund companies. This shows that the attitude has been expressed with real money, and we are optimistic about China's high-quality assets and the future development of the capital market. This is also a manifestation of the unity of knowledge and action. There is a very interesting saying in the capital market: "Look for Hongyuan for trend judgment, and look for it if you lack confidence." I also thank all investors for their love and attention to the judgment of Qianhai Kaiyuan Fund. I hope that the 9 investment report meeting held at the bottom of the market this time will point out the direction for everyone, so that we can lay out good stocks and funds at the bottom of the market and seize the opportunity of the bull market in 5.8.

Many people want to make quick money, hoping to enter and exit quickly and make money from the market, but this approach ignores the value of compound interest. Munger once said: "I don't make money from the market." This means that he doesn't want to enter and exit quickly in market fluctuations, otherwise it is easy to lose money instead of making money. In the stock market, most investors are pursuing short-term gains. They hope to make quick money, or even want to get rich overnight, but in fact, value investing is to grow with great companies, and compound interest is the greatest invention of mankind. Once you realize the value of time, you will not care about temporary success or failure, because the compound interest value created by time can not only accumulate your wealth, but also allow you to gain inner peace in the process of realizing wealth. In investment, time is one of the most important factors. An excellent company needs time to continuously create value, and investors also need time to enjoy the growth of this value. As Buffett said, time is a friend and the biggest beneficiary of compound interest. Only by buying good companies at a discount at the bottom of the market and holding them for a long time can the role of time be fully utilized and the compound interest effect be realized. Secondly, you must buy good companies, not those theme stocks or concept stocks. Only good companies can achieve the effect of compound interest. Good companies have sustained profitability and stable growth potential, and can continuously create new value over time. These companies often have strong competitiveness, excellent management teams and innovation capabilities, and can stand out in market competition. Only by choosing these excellent companies for investment and being a good shareholder of the company can you achieve sustained compound interest growth.

Value investing is not only suitable for US stocks, but also for A-shares. Over the past 30 years, the A-share market has not lacked a group of long-term bull stocks that have grown hundreds of times, nor a group of famous investors whose investment returns have exceeded 100 times. Many people question that value investing is actually not really recognizing the essence of value investing, holding some companies that have no long-term growth value for a long time, or falling into a value trap, buying some undervalued cyclical stocks, or stocks in sunset industries, and not earning the compound interest of time. In market fluctuations, short-term investors often face tremendous pressure and anxiety, always worrying about market fluctuations and market changes, while long-term investment allows investors to stay away from market noise, focus on the value creation of the company, and enjoy the investment process. As Buffett said, I only need two numbers, one is the value of the company, and the other is the price. If the price is lower than the value, it is a good investment. Long-term investment can help investors better understand the value of the company and make investment decisions more calmly. For the majority of small and medium-sized investors, no one can control the stock market trend, nor can they defeat quantitative trading. Only by holding stocks of high-quality companies and accumulating time can the compound interest effect be achieved and greater returns be obtained. The current market has already possessed many characteristics, and the next round of bull market is imminent. It is important to maintain patience and confidence and wait for the arrival of the next round of market. At present, chasing ups and downs and frequent trading are the root causes of losses for many investors. Layout good stocks and funds at the bottom of the market, and only time is needed for the rest. Believe in the national destiny, believe that the economy will re-enter the upward cycle in the future, and believe that it is only a matter of time before the stock prices of good companies rise again, so that there is hope to seize the opportunity of the next round of bull market.