A-share market finally explodes!

The biggest positive is the global interest rate cut wave has started.

The most direct benefit is that the banking sector has fallen, large-cap stocks have fallen, and small-cap stocks have risen.

As one whale falls, all things thrive.

However, don't act recklessly; value investing remains the main line.

The rise of small-cap stocks should also look for sectors with great potential in the future.

Equivalent to a 0.25% reserve requirement ratio cut overnight, the central bank has stepped in!

Buying 400 billion yuan in special government bonds.

Generally, a 0.25% cut in the reserve requirement ratio by the central bank is equivalent to releasing 500 billion yuan in funds, so this purchase of special government bonds is just the beginning, and there is an expectation of continued purchases, which is equivalent to a larger version of a reserve requirement ratio cut.

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In the first eight months, equity ETFs have attracted over 700 billion yuan globally, and the global bull market is made by ETFs.

According to Wind data, as of August 28th, the net inflow of funds into equity ETFs this year has reached 700.1 billion yuan.

As I have said, global bull markets are the same; as long as the market value increases or the market grows, it is impossible not to marketize.

In the future, index increases will be mainly driven by ETF funds.

The reason is that under marketization, only leading stocks generally rise, and ETF constituent stocks are usually composed of these leading stocks.

The more western, the more fierce, such as India's 80,000-point index composed of 30 constituent stocks, like the US Dow Jones at 40,000 points is also composed of 30 industrial leaders, and the Japanese index, etc., global bull markets are the same, the index rises, but individual stocks are not easy to deal with.

Data shows that in the past 10 years of the US bull market, only 10% of individual stocks have outperformed the Dow Jones, which means only 1/10 of individual stocks have outperformed the US stock market.

Now that the global flood creates a bull market, do you understand what to do?

In the past few months, ETFs have driven the rise of the four major banks, six major banks, and the banking index.

Now that the banking sector can't rise anymore, it has turned to growth small-cap stocks.

Of course, there are still big benefits behind these.

That is, the global interest rate cut wave is coming, which is driven by the global flood expectation.

The Federal Reserve will start cutting interest rates in September, which will drive central banks around the world to follow suit, except for some inflationary countries that raise interest rates, but the currency interest rate hikes in these inflationary countries can't keep up with devaluation, so they also have to run into the stock market or other appreciation targets.

Gold has risen like this!

You may not like to speculate in stocks, nor do you like to speculate in gold, but the international policy is a big flood, which forces your funds to move.

Of course, there are also those who can stay still.

You might wonder, what if everyone doesn't move?

You think too much.

You need to understand what hot money is.

Hot money is not excited money, it is the money of the dare-to-die corps, their money is leveraged, and they will be forced to move by high interest rates even if they don't move.

Why is the deposit interest rate lower than the loan interest rate?

They are afraid that you will take the money and deposit it back in the bank to turn it around.

So hot money, they either blow up or desperately find a way to rise.

Just like Hengda's boss, he was so rich before, and he kept messing around east and west.

Do you think he can't stop?

He can't stop, if he stops, it will blow up.

Most of those bosses who work hard are like this, they can't stop.

Do you think the bosses of Pinduoduo and TikTok are busy?

This is the real leisure.

Now, 5009 individual stocks are rising, A-shares have been oversold, they need to rise, and they need to rise sharply, they have been held up.

However, you must be calm, you must value growth, and look for opportunities with great space and direction.

Don't mess with downstream, and don't mess with sunset industries.

Because the value investment market generally doesn't like industries that rely on bailouts.

A-shares have 300 trillion yuan in M2 outside the market, 68 trillion yuan in asset management, 30 trillion yuan in bank wealth management, 28 trillion yuan in insurance funds, and more than 150 trillion yuan in residents' deposits.

In the Internet era, the fear is that the trend will rush into stock speculation.

The bull market of A-shares is the most terrifying, always rising in a few months.

Later...

It's annoying.

Don't mess around, the market is too big, there are more than 5,000 listed companies, you need to pay more attention to the trend, and pay more attention to the future.