A Reminder of ChiNext Volatility

Everything went right for China in March and with the data releases in April. And one day wiped out about a third of the gains.

Anxin Securities strategist Xu Biao in Wallstcn: 暴跌并不可怕,可怕的是股市跌、期货涨

He sees the believers in the Chinese rebound story piling into the futures market, while the disbelievers are staying with equities and bonds. He concludes that the scary thing isn't the drop in stocks on the chart, it's that futures kept rising.
Conclusion, the main short-term uncertainty from the bond market, as long as the bonds do not crash, stock price drop should be short-term. But wait a minute happy, the real risk is not here, but in the market long-term ecological changes. A growing pessimism in the stock market, a variation of the ecological chain market, can also act as a barometer of the macro economy. A smaller and smaller stock market volatility, but also to attract funds from various quarters come in it like moths to a flame? If one day lead to new shares no popular myth shattered when Who equity financing to pay for?
He mentions the second book in Cixin Liu's Three-Body Problem trilogy in describing the market ecology. The book is heavily analogized in China:
Three-body" says the universe is a dark forest, each civilization is a gun-toting hunter. Apply dark Liu Cixin big ideas to the market, there are the big fish, small fish and shrimp, together constitute the ecological chain, the big fish who manufacture hot points, small fish are based on the analysis to follow, shrimp were rushed to plug waves. After the fish become scarce, there was no harmony and win-win thriving scene, but lead to the deterioration of the situation - the system is no longer sensitive to stimulation and change.

Demand recovery, profitability is improving, Scattered index up, but the lack of market focus. Circle hit the phone to understand the situation, many institutional investors (including private equity raised) doing? Whether the rise in inflation concerns, worried about the success of the transition, worried about the sustainability of the economic recovery, pessimism has become the main tone, sweat. To put the past, the early start did roll sleeves.

China or the Chinese, the economy or the economy. Those who believe in supply-side reform and recovery in the demand side went to the futures market, those that do not believe that stay in the stock market and curse.
The second book of the trilogy describes the universe as a dark forest, and everyone in it hunters. The reason why we find no signs of intelligent life is because as soon as a more advanced civilization discovers another intelligent civilization, it exterminates it. All advanced civilization are hiding, searching for signs of other hunters in the Dark Forest, ready to pounce if they reveal their location.

No comments:

Post a Comment