I believe that after experiencing a retracement and the first wave, the SSE Composite Index will rise to 3800 points this time, and then the market will experience the first pullback. After dropping to 3480 points, it will rise again and maintain a medium to long-term bull market, breaking through 5000 points.
According to the theory of China's economic cycles, 2000-2001, 2007-2008, 2015 are important years. Therefore, if there were no pandemic, this bull market should have started in 2022. However, due to the impact of the pandemic and international situation, this cycle has been slightly delayed. I personally believe that this bull market is a result of the economic cycle returning + strong policy support. However, in the long run, I still do not have a bullish view on the Chinese stock market because the fundamental situation of the Chinese economy has not been fundamentally improved. The first point is that consumer demand is still insufficient, and the real economy's consumption is still seriously insufficient. Easing mortgage loans and loans to small and medium-sized enterprises will not significantly promote the level of national consumption. Instead, a large amount of cash has actually flowed into the securities trading market. The second point is that challenges in foreign trade and attracting foreign investment still exist. The main purpose of this three-party joint statement is to use extreme measures to deal with China's weak economic situation. However, this drastic measure will definitely be effective this time, but the effect may be short-lived, and in the end, it may return to the old path.
So, in terms of investment choices for this bull market, it is still important to exercise control. You should not buy everything for speculation; instead, choose investments selectively. You can use some of your funds for speculation, but keep a core position for value investing. In this bull market, I am bullish on the AI computing power sector.