The investment era of rebirth

Chapter 161 The GEM hits a new high!

"The GEM points to 1221 points!"

Seeing that the GEM index has set a new annual high again, and seeing that among the constituent stocks of the GEM, almost all popular concept stocks in the early stage have skyrocketed driven by a large amount of funds, investors in the entire market are amazed: "The market is going too far! Split, is this a bull market or a bear market? Is the stock index still saved?"

"Judging from the Shanghai Stock Exchange Index and the 50 Index, which keep hitting new lows, as well as the trading volume of the two markets, it is an absolute bear market."

"But judging from the trend and growth rate of the GEM this year, it is already in the bull market range, and many core concept stocks in popular sectors such as 'Internet Finance' and 'Mobile Games' have generally more than doubled the growth rate this year. Now, can this be called a bear market?"

"It should be regarded as a partial bull market, structural bull?"

"I really didn't expect that the GEM could go so well this year. It seems... I have to open the trading authority of the GEM tomorrow."

"It must be opened. Now the active funds in the entire market are basically gathered on the GEM."

"The main board is already like an old antique and can't keep up with the times. I have a feeling... Maybe the GEM index can catch up with the Shanghai index in the future."

"Can't you? The gap between the two is still more than 850 points."

"There is nothing impossible. If the market continues to follow the current style, the ChiNext Index will be able to catch up with the Shanghai Stock Exchange Index by the end of the year."

"If the ChiNext Index really catches up with the Shanghai Stock Exchange Index, then the valuation is not high enough?"

"The stocks of companies in the emerging economic field cannot be valued according to the stocks of companies in the traditional economic field. The institutions just didn't realize this clearly, so in the past six months, they have seriously failed the ChiNext market, so... really according to It is really a misunderstanding to use PE to speculate in stocks.”

"If you don't press PE, what should you press?"

"Future industry and company growth expectations."

"I carefully read the market analysis article published by Fortune Road on an online forum in June yesterday. What I said was really reasonable. I decided that the future investment direction should be placed on the Growth Enterprise Market. Don't look at Netspeed Technology, Fenda Technology, Huaqingbao, Changqu Technology... These stocks have risen by 6 or 2 times. In my opinion, compared with their future growth expectations, their stock prices are still at the bottom at the moment."

"Say a thousand, say ten thousand, the flow of market funds can't be faked, and the core blue chips of the main board have absolutely no future."

"Yes, technology is the primary productive force, and the GEM is the future."

"It's nothing to say, just go directly to the GEM. Even if many of the GEM's constituent stocks are at a high level and it's not easy to intervene, it's better for me to buy ETFs on the GEM directly than sticking to such big blue-chip stocks."

As more and more investors abandon the main board, they follow the trend and enter the GEM stocks, chasing core hot stocks such as Netspeed Technology, Fenda Technology, Huaqingbao, Changqu Technology, LeTV, Huayi Brothers, Dongfang Fortune... Among them, with the passage of time, the gap between the growth rate of the ChiNext Index and the Shanghai Stock Exchange Index has become wider and wider.

And just as the situation of "two heavens of ice and fire" became more and more intense...

After the disclosure of the semi-annual report before, abandoning Waigaoqiao and Shanghai-Hong Kong Group's "Jingda Investment" internally, the fund manager and company owner Gu Chijiang, seeing the momentum is like a rainbow, the GEM index that is constantly hitting new highs, and many GEMs The core popular stocks couldn't help but frowned slightly, and secretly said: "Could it be that the market's valuation system really doesn't work anymore? The core assets of the main board, blue-chip stocks, really have no future?"

In his opinion, the core hot stocks on the GEM that are skyrocketing in the current market.

None of them have long-term value at all.

However, it happened that he was not optimistic, and the rise was the most fierce, and it was not a short-term speculation, but a continuous upward trend, and the attack power of the big funds in the market was wave after wave. Investors from all walks of life rushing to raise funds are emerging in endlessly.

This made him seriously suspect that there was something wrong with his investment philosophy.

"Mr. Gu, through the observations of the past few trading days, in the market, the funds of large institutions on the main board are indeed constantly rebalancing into the GEM." In Gu Chijiang's deep thought, Team Leader Lin in the trading room said, "The liquor sector Trend, in the last few trading days, although the overall trend is still slightly stronger than the Shanghai Stock Exchange Index, it is still far behind the performance of the ChiNext Index. I feel that the style of the market has indeed changed. Should we... Try How about taking a little more positions in the core constituent stocks of the GEM to balance this style change in the market?"

"Is Team Leader Lin planning to go in and pick up the offer at this time?"

Before Gu Chijiang could speak, Hao Weilai, a fund investment consultant and market analyst who did not get along well with Team Leader Lin, had already said with a smile: "The current soaring Internet speed technology, Fenda technology, Huaqingbao, Changqu technology... these The core popular concept stocks on the GEM, let alone their valuations, there is no single check with a PE of less than 100 times. If you analyze these stocks from a technical perspective, you can clearly see that these stocks are already at the last risk of speculation. It’s the game stage, and if you rush in to take orders at this time, there is a high probability that you won’t be able to eat the meat, and you will be beaten.”

"and……"

"Even according to what the market says, the concept of 'new economy' must be valued according to the new market."

"Then these stocks are the most optimistic, with 50 times PE, which is 4 times higher than the main board on average, which is almost the same? But how much is it now? Generally more than 100 times... This is no longer the so-called 'new market, new valuation', It’s a pure bubble, and A-shares have been developing for so many years, and there is no bubble that will not burst.”

"At this time, going in to chase the GEM is basically the same as chasing Huaguo Petroleum when it was at 07 points in 6000."

"On the other hand, although the liquor sector has not risen much for the time being, it can be determined that it is the bottom, and it is difficult to compress the valuation downward. I think...it is very unwise to abandon high-quality chips and chase bubble chips."

"Mr. Hao thinks that the blue-chip stocks and blue-chip stocks on the main board still have a bright future?" From the bottom of his heart, Gu Chijiang doesn't feel that the market sentiment is chasing the high point, chasing the popular concept stocks that have risen several times, what is the tone? Cang's good idea, he tilted his head and asked Hao Weilai with a smile.

Hao Weilai nodded, and said with a smile: "Value investing is not a lie. I think the bubble on the GEM will burst, and the core blue-chip stocks, white horse stocks, and even many blue-chip stocks with excellent performance and good future performance growth expectations are still on the main board. Stocks are bound to usher in a reversal.”

"Among them, the liquor sector was the most severely suppressed by the market in the early stage, and the valuation was also the lowest."

"I think it is the long-term investment sector with the most investment potential in the future market development, and I also think...at this time, we should not give up."

"The prospect of the future is very beautiful, but we also want to be able to live into the future!" Team leader Lin did not agree with Hao Weilai's opinion, "The market trend proves that the Growth Enterprise Market is indeed the sector with the strongest profit-making effect in the two cities, and... …All the big funds in the market are indeed continuing to flow into the GEM."

"Investing, the most important thing, is to follow the trend."

"I think... at this time, what we need most is performance. We should not have the idea of ​​'the world is drunk alone, but I am alone', and we should not ignore market trends."

"essentially……"

"Since July 7, we have increased our positions in the liquor sector on a large scale."

"Although the liquor sector has outperformed the Shanghai stock index as a whole, under the market expectation of 'dilemma reversal', the overall trend is still lower than this expectation."

"And, especially since last week."

"Observing from the boards of Jincheng Fenjiu and Qianzhou Moutai, the funds intervened by various funds are also continuously flowing out, and there is no way to get past the pressure position ahead of them. In other words...the liquor sector, if you want to Going strong independently is simply not realistic.”

"On the other hand, LeTV, which we have some holdings in, is several times stronger than Jincheng Fenjiu, the fund's largest holding."

"It is true... LeTV's PE valuation, whether static or dynamic, is at least six or seven times higher than Jincheng Fenjiu from an analysis point of view, but the current market style is like this, and all funds are abandoning traditional , and embrace the 'new economy', if we don't follow suit, the performance will not improve at all."

To be honest...he doesn't like the market style in the past six months either.

I also don't understand the underlying logic that various funds in the market follow to continuously hype these so-called 'new economy' bubble stocks.

But he knows that the most important thing to invest in is to follow the trend.

Now that the market trend has been deduced for half a year, and the sign that the GEM bears the main line of the market is becoming more and more obvious, and the profit-making effect of aggregation is getting stronger and stronger, then there is no reason to continue to turn a blind eye, even if you do not agree with the logic. It is also necessary to adjust the positions appropriately to balance the relationship between the two styles in the market, so that the fund performance will not be too miserable, seriously lagging behind the market, and dampening investor confidence.

Gu Chijiang listened to Team Leader Lin's words.

Knowing that the two have huge differences in investment philosophy, they couldn't help but think for a moment, and said: "From the perspective of the actual market trend, the upward trend of the ChiNext is indeed stronger than that of the Shanghai Stock Exchange Index. What Team Leader Lin said makes sense. , but...Although I don’t understand short-term speculation, I also know that once a stock or a sector reaches the climax stage of emotions, it is basically not far from adjustment and ending.”

"I admit that after the wave of emotional hype is over, when the adjustment is completed, the style of the market may still develop centered on the Growth Enterprise Market."

"But at this moment, it is really inappropriate to chase the rise at a high level."

"How about this……"

Gu Chijiang paused, and said: "When the next opportunity to adjust positions, that is, the opportunity to change market sentiment, we can appropriately increase our holdings of core hot stocks on the GEM and balance our holding style. ...Let's keep the original position unchanged!"

"After all, when the mind is disturbed, it happens that the more you move, the more wrong you become."

"Mr. Gu..." Hao Weilai wanted to say something, but Gu Chijiang stretched out his hand to plan his words.

Team leader Lin glanced at Hao Weilai, who was hesitant to speak, and knew that Gu Chijiang had made up his mind, so he didn't speak any more. The market continues to evolve.

During the same time...

The same divergent scene as in Jingda Investment also happened in many large private equity, public equity institutions, and even the proprietary investment departments of large financial institutions.

The Shanghai Stock Exchange Index and the Growth Enterprise Market Index are extremely torn apart.

The internal analysts and fund managers of these large investment institutions were suddenly divided into two factions. The trend investment thought was rising rapidly, while the value investment thought fell into a trough again, and even began to be ridiculed by many analysts. 'Value investing' is simply an evil way.

Thanks to the rapid rise of 'trend investing' and the temporary destruction of 'value investing'.

A large number of retail investors and institutions who were caught on the blue chips on the main board began to cut their meat and adjust their positions one after another, entered the ChiNext, chased popular stocks, and participated in the hype of hot money.

In this atmosphere...

GEM refers to popular core stocks, which are becoming more and more sought after, and about 'new economy, new valuation', as well as 'financial technology', 'financial innovation', 'tide of smart terminal equipment revolution', 'mobile Internet', ' The core concepts of the future "new economy" such as mobile games have also been recognized by more and more large financial institutions, and more and more funds have penetrated into these fields.

Finally, when the market closes at 3 o'clock in the afternoon.

The Shanghai Stock Exchange Index rose 0.35%, almost unchanged, while the ChiNext Index rose by 1.98%. The index point was fixed at 1226.36 points, setting a new annual high, and it was less than 100 points away from the historical high.

And in the GEM index rose sharply.

The "Internet Finance" sector once again led the rise in the concept sectors of the two cities. There were as many as 6 stocks with a daily limit, and as many as 5 stocks with an increase of more than 12%. After the "finance" concept, the sector rose by nearly 3%, and it is still market funds, the core attack sector.

Of course, except for the few major sectors with the best performance and the strongest profit-making effect.

The overall profit-making effect of the market is not good, and the overall volume of the two cities has not been significantly enlarged. On the surface...all the market performances in the current market are just stock games, not incremental support.

And, among them...

Coal, non-ferrous metals, steel, petroleum, chemicals, building materials, real estate... These pillar industries of the real economy have plummeted across the board.

The entire market of the two cities, and their styles.

There is an obvious trend of "from real to virtual", from traditional fields to new economic fields such as "Internet" and "smart electronic equipment".

And, just after the market closed...

At a time when various financial media reported that the Growth Enterprise Market Index had set a new annual high, and retail investors were discussing how many consecutive boards this big monster stock, Shanghai Steel Union, could go, and where it could go, a member of 'Huatai Junan' A senior analyst publicly called out the view that the future economy will develop from "real to virtual", and investment opportunities will also develop from "real to virtual".

For a while, it aroused the attention and heated discussions of the entire market, many well-known analysts, financial big Vs, and fund managers.

PS: There is more follow-up, it will be later!
(End of this chapter)