The End Of The Bear Market Is Followed By A Usually Longer Bull Market.

The slowdown in China's economy is not news. With the transformation of China's economy from a capital intensive economy to a consumer and service-oriented economy, this slowdown can be expected. Besides, we always encounter geopolitical crises like this, but history shows that most crises do not have long-term effects on the market.

The pressure of devaluation has not only been depressed. exchange rate It also increases the difference between the offshore and offshore exchange rates. Today, the central parity of RMB against the US dollar was 6.5419, an increase of 102 points, an increase of 0.16%, the largest percentage increase in December 4th. Affected by this, offshore renminbi has risen, but this rise has not been sustained.

The devaluation pressure is considered by some to be the direct cause of the recent stock market volatility. The reason is that devaluation will make asset prices depreciated in Renminbi, and the stock market will bear the brunt of it. Whether this statement is correct or not can not be judged at the moment, but the factors that affect the stock price have never been single.

Ron Baron, the investment guru of Wall Street, the founder of American balun assets, has a total assets of 26 billion US dollars. He believes that although China's stock market is constantly volatile, there are also some companies growing up in adversity.

We have received many enquiries about abnormal fluctuations in the market in early 2016, and my answer is simple: keep calm and stick to the end. The reasons for the recent sell-off in the market - the worries of China's economic slowdown and various geopolitical crises - have not fundamentally changed the overall investment pattern.

As you know, I have been an analyst since 1970. It has been 45 years now. I think the accumulation of experience makes my perspective different from most investors. During my career, I witnessed countless bear markets, market restoration and rapid decline. In various forms of falling market, I participated in the investment, except for the shock triggered by the great depression, I almost survived all kinds of crises, though there were almost accidents in 2007-09.

Here are some examples:

1. the 1973-74 year crisis in the Middle East pushed oil prices up sharply and opened up a long recession.

2. in the 1980-82 year, the Federal Reserve raised interest rates to 20%, pushing the economy into recession.

3.1987 years of programmed trading strategy flooded the market, leading to the October 19th. Economic collapse 。

4. the collapse of the Internet bubble in 2000-02.

5. the burst of the real estate bubble in 2007-09 caused a chain reaction and exposed. financial system The main structural cracks, followed by the credit crisis, led to the worst recession in 80 years.

The lowest bear market lasted for three months (black Monday), and the longest lasted for 30 months (the Internet bubble burst). However, with the end of every bear market, the bull market usually follows is a longer term. This is the present situation. We see some rare opportunities to buy some high-quality growth stocks at attractive prices. From historical experience, we also believe that the stock market can recover.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.