Gui Haoming: The Stock Market Is Returning To Normal.

In fact, I am afraid that it is a bit early to study whether the market is coming to an end, but one of the problems that people should pay attention to is that the market is returning to normal and its influence. Looking back at the stock market trend in late November and December last year, we can say that the hurricane is going on, and the financial sector continues to rise. The turnover of the stock market has continued to record high. This situation is undoubtedly very welcome for investors who have endured many years of stock market downturn. We expect that the price of many stocks will double in this short period of time, and the index will be cut off and the market will be as long as possible. But objectively speaking, the trend of the stock market is not only unmet but also unsustainable.

In particular, because the market itself does not have solid basic support, it is based on capital push. Experience has proved that capital orientation equity market The flow is characterized by impulsiveness, and at the same time, because of a considerable proportion of the current inflow of funds is borrowed by various means of credit, its stability is usually not particularly high. This determines that when the market breaks out, its intensity is particularly strong, but its stamina is not necessarily sufficient. It should be said that this round of market can continue for almost six weeks of super strong state, has been greatly unexpected. However, rational investors are also aware that after all, the soaring price of this kind of high turnover is not normal for the stock market to run. Sooner or later, it will be adjusted. This adjustment has been gradually manifested through several major shocks in the market since January of this year. In some ways, the shock is not yet over. But one thing is clear, that is, during the concussion, the market slowly returned to normal.

The so-called stock market normality does not mean that the market is calm. For the stock market, this is the least likely to happen because the stock market is characterized by volatility. However, conversely, the stock market is unlikely to fluctuate for a long time, and the market environment can not be changed every day. As a barometer of the economy, the stock market can not be repeated ups and downs in the absence of a fundamental change. If this is due to certain factors, the market will be suppressed before this will lead to a strong rise in the past to complete the valuation. However, after the rise is basically in place, the stock market will certainly resume its normal operation pattern. Too high turnover rate, sustained unilateral rise, and very extreme stock market structure can not be a sustainable phenomenon. In this sense, now Market No longer take unilateral market, but rise and fall, the various sectors of the rotation performance, turnover is relatively mild, and so on, can be seen as a return to normal market performance. Its appearance should be said to be a good thing.

There is indeed concern that if the market returns to normal, will there be any bull market? In fact, the bull market is diversified, and the vast majority of the bull market is in the market. Normalization Running in context. The fast bull market is exciting, but it is much easier to accept than the slow bull market and fully enjoy the resulting results. This week, there was a lot of bad luck, and the market also had a big shock. If the bull market is over, it can indeed become an opportunity. But the reality is that the stock market, which suffered from bad luck, did not fall as big as some people thought, and it soon stabilized and rebounded. This shows that even after returning to normal, the stock market did not end up, but changed the form. Furthermore, because the market is no longer in the process of lack of adjustment in the upward process like that of the previous stage, and there are too many profit margins, even if there is a shock market, the relative volatility will be relatively limited, which will play a positive role in restoring the popularity of the stock market and promoting the smooth upward movement of the stock market. Yes, of course. For investors who are still immersed in the hurricane market, it is time to adjust their understanding of the market and the way of thinking.