Pre Election Stock Selection May Adopt The "Double Ten" Principle.

In experience

Monday's market performance has been "foreshadowed" last week.

Last Tuesday, the net capital outflow of $1 billion 526 million was significantly lower than that of Monday's net outflow of 4 billion 26 million yuan, indicating that the short-term market is weakening. The banking sector has seen signs of stabilisation and financial exploratory support after a continuous decline.

The stock index has been on the trigger line even after pulling six Yin lines, but the strength of the rally will still be restricted by the market's worries about the policy level.

Combined with the multi day A share market's plate rotation and adjustment rhythm, we can clearly find that in the market performance, due to the excessive speculation of thematic plates, it has greatly overdrawn the future imagination space, thus triggering market expectations change.

Investors do not have mass hysteria as expected by the market. Instead, they retreat from one plate to another in an orderly way, fully excavating every depression that may be undervalued.

We believe that developing strategic emerging industries, adjusting the industrial structure, promoting balanced regional development, changing the mode of economic growth, and increasing social security to improve people's livelihood will be a long-term plan.

We always believe that the theme plate is still the target of investment for a long time.

Policy guidance is the main line, which restricts the performance space of the plate. The flow of capital leads to market volatility. While valuations are reasonable, only the "chicken ribs" market is possible. In the face of the coming long holidays, choosing a definite theme investment opportunity will be a better strategy.

From the perspective of market performance on Monday, stocks in gold, commodities and other sectors are even more eye-catching. In terms of trend, the depreciation of the US dollar and the appreciation of the renminbi will be a big probability event, so many analysts will suggest that these sectors should be concerned.

This strategy can be justified in pre - Holiday trading days.

However, for the long holiday, this investment strategy ignores the fact that the international market trend is unpredictable after all, and the stocks that are linked to the US dollar, such as gold and commodities, will undoubtedly increase uncertainty. Our investment goal is to look for definite opportunities instead of taking risks. For most risk averse investors, this strategy seems too radical.

The theme plate to improve people's livelihood and stimulate domestic demand is more robust as investment target.

As we all know, holiday economy is a constant theme of long holidays. Especially in the context of current energy saving and emission reduction and structural adjustment policies, it is more appropriate to lock investment into wine making food and commercial tourism.

In choosing the principles of these varieties, we believe that two principles should be followed: first, the market value of circulation should not be too large to be 10-20 billion; second, the stock price should not be too high, and it should be between 10 and 20 yuan.

In short, we take the "double ten" principle to select the theme investment opportunities which are favorable for long holidays.