A Real Bear Market: A-Shares Sink Following Ministry and Media Support

Nothing will stop the A-shares bear market except a shift in sentiment. Last month was terrible for securities firms: Chinese Brokers Profits Fall to 10pc of Bull Market Peak. Over the past few days, the government launched another policy and propaganda blitz (after the one in mid-August had little impact) and there were headlines saying the bottoming process is underway. Stocks moved lower on Monday. New headlines warn the bottoming process can involve a breakdown to new lows.

iFeng: 沪指跌超1% 深成指、创业板指齐创调整以来新低
Specific closing point: Shanghai Composite Index closed at 2669.48 points, down 1.21%, turnover was 102.9 billion; Shenzhen Component Index closed at 8158.49 points, down 1.97%, turnover was 145 billion; GEM closed at 1390.82 points, down 2.41%, with a turnover of 45.8 billion.

In terms of the industry sector, except for the slight increase in gas water, the rest of the sector floated green. Computers, securities, e-commerce and other sectors were among the top losers, with both falling more than 3%.

More than 3,000 stocks fell in the two markets, and 27 stocks were limit down.
The failure to bounce on Monday has swung the headlines from cautious optimism to warning of a breakdown.

iFeng: 你在考虑抄底?请注意!后市行情大概率向下突破
Today, the key words of A-shares are new lows. The Shenzhen Stock Index hit a new low since December 2014. The GEM is a four-year low. The Shanghai index is slightly better. There are still more than a dozen points away from 2653, but the probability of breakdown in the market is also Larger.

After the A-share fell into this bear-like sample, can it now be copied?

First ask, is it the bottom now? What is the nature of the bottom?

The master of the resurrection believes that there is still a distance between the stocks at the bottom of the medium and long-term. In the short-term, there will be a partial rebound after each decline, but they are all relatively short-lived. In the case of individual stocks, some follow the market trend and are wrongly killed. The blue chip stocks can look at the opportunities.
Nevertheless, it may be a good time to buy if you can hold.
Second, ask, what kind of risk appetite are you?

If your money is not easy to earn, and you have to be responsible for eating and drinking, then don't enter the market now; if you are already in the middle class, and you are willing to contribute to the A-shares, then now, the master will never Stop; if you are rich and rich, then you may wish to carry forward some spirit, buy some stocks, long-term, do not believe that you can not make money in the next year!

According to institutional statistics, investors only need to subscribe to the fund below 2800 points to make a profit. The average yield of holding one year is 41.03%, the average yield of holding three years is 102.37%, and the average yield of holding five years is as high as 146.91%.

But buying stocks should not be so lucky.

All in all, A shares are now in the bottoming stage, blindly smashing the bottom and being shot dead on the beach. The source of the organization directly stated that the market transformation needs to be able to support the breakthrough, and the market outlook will break through.
If you can't afford to buy A-shares at bargain basement pricing, maybe you should be eating instant noodles.

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