China Securities is being overthrown and restarted

China Securities once again plummeted last night. Although the decline was not as large as before, this time there was no difference in damage. If I had to say, the current decline in China Securities was clearly calculated based on the fall. Just look for Chinese securities. Last night they were all close to 10 points. Moreover, it had already dropped a wave the night before yesterday. As for the decline in many stocks this year, it's really unbearable.

Apart from killing valuations, another important factor is the foreign company accountability law that the US just passed yesterday. This was also the trigger for the decline in the first half of the year. The recent passage of this bill is considered a negative and complete implementation. We will wait and see how it will actually be implemented in the future.

At this point in time, let's sort out China Securities once again. Earlier, I said that China Securities have two risks: policy risk and valuation risk.Currently, valuation risks are basically negligible, but policy risks are still huge. There are many policy impacts. There are many sources. Currently, it seems that policies in some fields have continued to be implemented, but more policies may still be on the way. Currently, valuation risks are not great, but the emotional impact brought about by the policy still requires caution.

Since last year, China's securities have skyrocketed. There are countless stocks that are ten times larger in a year, but the sharp decline since the beginning of the year has almost smoothed out this rise, and even continued to decline. The current decline can no longer be explained by fundamentals, but companies with good fundamentals may be more resistant to falling. However, since stocks with good fundamentals will have more overseas investors, the selling pressure from these people will offset the strong fundamentals, so it is reflected in stock price trends, where it is falling indiscriminately.

From a prudent point of view, don't go to the bottom. Even after falling so much, I think bottoming out is still an extremely uneconomical profit/loss ratio. This is the first time I've experienced this kind of thing in so many years when trading stocks. There is too much uncertainty about how it will evolve and how policies will be coordinated in the future. The only thing that is certain is that some companies are really good, but never let the collapse brought about by overcrowding emotions. It's already happened once before, and yesterday can be counted as another time. Whether they will come again in the future is really hard to say.Until all the great uncertainties come to fruition, watching is always the most elegant choice.

Currently, the Internet section in China isThe best growth is the three idiots of new energyThis one is my personal favorite right now. Although it's a pretty tough kill, if I go to the bottom in the future, I'll probably start from here. The growth logic of the entire Internet sector is gradually being falsified. Although there are still quite a few companies growing, the growth rate is slowing down.If you can go out to sea to harvest all over the world, then this is a new story. Currently, it's more like a cold winter on the internet, and the cold tide has only just begun.Although many internet companies have laid off employees before, I was shocked until I saw iQiyi say they wanted to cut 20% to 40% of their employees. But it's also normal. After all, it's always been

Policy risk is definitely the biggest risk. Many companies' moats are based on policy stability. If policies begin to be continuously adjusted, the company's valuation and the level of the moat may all be broken. Companies that don't pay attention to social image and the direction of the country's development are likely to be eliminated. Even if they are not eliminated, they still have to be wary of the company's irrational operations.

If you're still habitually bottoming out after more than half a year of sharp decline in China Securities, then there really isn't much to talk about. Undercutting is never the best solution. You can buy discounted products, but discounted stocks are likely to have holes, especially stocks with a discount are likely to be huge pits.

People have been asking this question since March. Don't always think about buying at the bottom, but buying in the midst of an upward trend. If it actually reverses, even if it goes higher, it's far safer than it is now. If it were a reversal, then the increase would definitely not be 20 or 30 points; it would probably be several times the intense market. Never underestimate the power of emotions. It can skyrocket throughout the year. A bunch of people say it's not reasonable. Many people say it's underestimated this year. These people are probably in the same group. The value of stocks usually switches between excessive overestimation and undervaluation, and rationality is probably just an instantaneous thing. More stocks are switching between being very overvalued and very undervalued, such as China Securities.

To borrow a quote I saw elsewhere today, the current situation of China Securities is, if it is delisted from the US stock market, then why buy it, and if not delisted from the US stock market, then why buy it