In December, The Stock Market Remained Unchanged Despite Shocks.

Friday's collective diving of large cap stocks plunged the Shanghai Composite Index by nearly 60 points, ending the four consecutive markets in the stock market, which made people somewhat worried about the trend in December. I think the stock market in December will remain stable despite the adjustment trend.

1. management layer The intention of maintaining stability is very obvious. Last week, after several months of the biggest slump in three months, remedial measures were taken on Sunday night. This unusual correction means that management is trying to maintain the stability of the stock market at the end of the year.

2, there are many favorable factors for the stability of the stock market in December. For example, this week, the yuan officially joined the SDR basket of currencies and became the 180 national currency reserve of the IMF. This not only shows the good international reputation of the RMB, but also shows that the improvement of China's comprehensive national strength and the enhancement of international prestige are absolutely great for the economy, finance and stock market.

In addition, the stock market's capital side is still loose: Shanghai stock has entered a continuous 9 days of net inflow of capital; stock market stock margin increased by 46 billion 700 million last week, new accounts opened 361 thousand and 500, a 18 week high; in November, the new fund raised 70 billion 100 million, which exceeded the sum of the previous March; in November, QFII and RQFII added 17 billion people's currency, and after the new fund was frozen 2 trillion and 30 billion, the turnover volume remained at an average of about 850 billion days before the fourth week of this week.

3, there are also some factors that are not conducive to stability in the stock market in December.

First, regulators still require securities companies and public funds to investigate private equity financing swaps, and some products will be liquidated on their own.

Second, in the middle and late December, there will be 2 new shares, and 2 trillion of the funds will withdraw from the two tier market.

Third, in late December, banks will recover some of them. credit The listed companies will recover the funds for the clients' financial management, and the institutions will settle the accounts at the end of the year, and the stock market funds will face severe tests.

Fourth, in January 8th next year, the ban on holding more than 5% of major shareholders within six months of the rescue period will expire.

Fifth, there are indications that the timing of the IPO registration system is expected to advance, and the pace of IPO issuance in 2016 will definitely accelerate.

Sixth, the Fed raised interest rates.

All these unfavorable factors will increase the volatility of large and individual stocks.

4, the key to stability: large cap stocks can only be set up without leading role.

If the market can be maintained in this large box in December, I think it is stable. Although there are only 300 drops on the top and bottom, as long as the right stocks are selected, especially the reform stocks and restructured stocks, they can also win the market.

Practice has proved that every year in December, small and medium cap stocks are better than large cap stocks; medium and low price stocks are better than high priced stocks; exogenous growth stocks are better than endogenous growth stocks. Industrial stocks It is better than dominant new industrial stocks; stocks are better than indexes; investors are not fighting for capital, courage and luck, but intelligence, vision and mentality.

On Monday, the market reversed a 118 point gain after hitting 60 antennas and 3332 points, and continued to rise from Tuesday to Thursday. This is mainly due to the famous commentators of a number of famous brokerage research institutions, who claimed that "market style has been transformed into" 28 quotations and big financial quotations. "This winter and next spring will be the leading market share of large cap stocks", triggering many days of soaring real estate stocks, bank shares, insurance stocks and brokerage stocks.

I think it would be easy to become an unstable factor in the ups and downs of the market by not properly raising the status of large cap stocks. Because there is no possibility of big bull market in the market at present, economic fundamentals, industrial policies and market funds do not support the launch of the blue chips Market. Most institutions and investors including social security funds, public offering funds and private equity funds do not agree with and participate in the market of blue chips in terms of investment, investment style, investment habits and position arrangement. A broker who has been caught in the blue chip market in the rescue market has called for big blue chips, which will be hard to come by. In my view, large cap stocks can go up the steps, but they can only take up the stage after taking up the stage, but can not play the leading role. On the new stage, only small and medium sized stocks, restructured stocks and growth stocks can be allowed to sing. This is especially true in December every year.