The market is sluggish, and one of the investment bloggers that I usually follow has transformed into a blogger with babies.
However, the more sluggish it is, the more you should dive in and study, because a rapid rebound may appear at any time.
What is your strategy when the market turns better?
Buy low-value growth stocks or value stocks?
The author believes that under the premise of ensuring safety, when the broader market shows signs of bottoming out, stabilizing and rebounding, it will be a good choice to increase the allocation of growth stocks in the future.
Because during the Fed rate hike phase, the price of growth stocks has fallen sharply: the famous American technology growth style fund, Sister Mutou’s ARK fund has fallen 78% from its highest point.
A-share computer ETFs, Hang Seng Technology ETFs, and China Concept Internet ETFs have also been cut in half.
Most of these companies that have fallen sharply are facing a decline in performance, suffering double kills in performance and valuation.
The question is, which companies to buy when the market rebounds?
You should buy companies that not only won’t go out of business, but will thrive in the next ten years. Also, buy it cheap.
Therefore, the author is still optimistic about Alibaba, Tencent Holdings, Anker Innovation, Flush, Hang Seng Electronics and so on.
The stock prices of these companies have now reached a low point due to issues such as shareholder reductions, interest rate hikes by the Federal Reserve, and liquidity in Hong Kong stocks.
But, how glorious the past has been, how long the lows will be. In the past ten years, it has risen too much, and it has risen too fast, so it may take a long time to recuperate to pay off the debt.
The current stock price has obviously reached a very reasonable level, so wait patiently until the bearishness disappears and the market reverses.
In a recent meeting in Christchurch, I met a person who works in FIS in the United States. He is a financial IT company. He is very professional. He needs both financial knowledge and IT skills. I learned about the FIS company he is in. It has indeed been bullish for a long time since 2004 (see the picture below), and has repeatedly hit new highs (only during the 2008 economic crisis and this year when the Federal Reserve raised interest rates continuously), It shows that the financial IT industry has a bright future.
To be fair, finance is the industry closest to money, and IT and digitization are the direction of future development. Therefore, the fathers of the financial IT companies are very rich, so financial IT is the easiest way to collect money. You can take a second look at the stocks in this industry. Among the A shares, the most powerful financial IT is still the three Musketeers of Oriental Fortune, Hang Seng Electronics, and Flush.
risk warning:
Today I saw a saying that the U.S. stock market in the past 10 years has taught everyone what a bull market is—the U.S. stock market after the recovery from the economic crisis in 2008 has been rising without correction. In the next 10 years, US stocks will tell everyone what a bear market is. (The theory is that the U.S. economy has fallen into stagflation: the economy has stagnated because of interest rate hikes, but inflation remains high), and the short-term outlook is indeed not optimistic.
So, again, let’s go slowly, until the mountains and rivers are exhausted, and when everyone’s heart is ashes, surprises will suddenly appear.
$ Tencent Holdings (00700)$ $ Oriental Fortune (SZ300059)$ $ Tencent Holdings (00700)$
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