Chapter 161 ChiNext Index Hits a New High!

"The ChiNext Index is at 1221 points!"

Seeing that the ChiNext Index has once again set a new annual high, and that among the ChiNext constituent stocks, almost all the hot concept stocks in the early stage have soared sharply driven by a large amount of funds, investors in the entire market are exclaiming: "The market is too fragmented. Is this a bull market or a bear market? Is there any hope for the Shanghai Composite Index?"

"From the perspective of the Shanghai Composite Index and the 50 Index, which has been hitting new lows, as well as the trading volume of the two markets, it is definitely a bear market."

"But judging from the trend and growth of the ChiNext this year, it is already in the bull market range, and in popular sectors such as 'Internet finance' and 'mobile games', many core concept stocks have generally increased by more than double this year. This can be said to be a bear market. Is it a bull market?"

"It should be considered a partial bull market, a structural bull market?"

"I didn't expect that the GEM would be so strong this year. It seems... I have to open the GEM trading rights tomorrow."

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

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

"It can't be? The gap between the two is more than 850 points."

"Nothing is impossible. If the market continues to follow the current style, the GEM index will catch up with the Shanghai Composite Index by the end of the year."

"If the GEM index really catches up with the Shanghai Composite Index, then the valuation will be sky-high, right? ”

“The stocks of companies in the emerging economy sector cannot be valued according to the stocks of companies in the traditional economy sector. Institutions are not aware of this, so they have missed out on the GEM market in the past six months. So... it is really a misunderstanding to speculate in stocks based on PE.”

“If not PE, then what?”

“Future industry and company growth expectations.”

“Yesterday, I carefully read the market analysis article that Fortune Road posted on the online forum in June. It really makes sense. I have decided that the future investment direction will be on the GEM. Don’t look at Netspeed Technology, Fenda Technology, Huaqingbao, Changqu Technology... These stocks have risen by 2 or 3 times. In my opinion, compared with their future growth expectations, they are The stock price is still at the bottom at this moment. "

"No matter what, the flow of market funds cannot be faked. 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."

"No doubt, go directly to the GEM. Even if many of the GEM constituent stocks are high and difficult to intervene, I will directly buy the GEM ETF on the grid, which is better than holding on to such a large blue chip stock."

As more and more investors abandon the main board and follow suit to enter the GEM stocks, chasing the core hot stocks such as Netspeed Technology, Fenda Technology, Huaqingbao, Changqu Technology, LeTV, Huayi Brothers, Oriental Fortune..., over time, the gap between the growth of the GEM index and the Shanghai index is getting bigger and bigger.

And just when this situation of "ice and fire" is getting worse and worse...

After the semi-annual report was disclosed, the fund manager and company owner Gu Chijiang, who abandoned the Waigaoqiao and Shanghai-Hong Kong Group's "Jingda Investment" that did not meet expectations, looked at the ChiNext Index, which was rising rapidly and reaching new highs, and many core hot stocks on the ChiNext, and couldn't help but frowned slightly, thinking to himself: "Is the valuation system of the market really useless? The core assets of the main board, the blue chip stocks, really have no future?"

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

There is no long-term value at all.

However, it is precisely the ones he is not optimistic about that have risen the most fiercely, and it is not a short-term speculation in a while, but a continuous upward trend, and the attack strength of the large funds in the market is wave after wave, and various investors who rush to buy at high positions are simply endless.

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

"Boss Gu, through observations in recent trading days, the funds of large institutions on the main board are indeed constantly shifting positions into the GEM." While Gu Chijiang was thinking, Team Leader Lin in the trading room said, "The trend of the liquor sector in recent trading days, although the overall trend is still slightly stronger than the Shanghai Composite Index, it is still far behind the performance of the GEM Index. I feel that the style of the market has indeed changed. Should we...try to increase our positions in the core constituent stocks of the GEM to balance this change in market style?"

"Does Team Leader Lin plan to take over at this time?"

Before Gu Chijiang spoke, Team Leader Lin Hao Weilai, a fund investment consultant and market analyst who has always been a bit of a pain in the ass, said with a smile: "The current surge in the popularity of Netspeed Technology, Fenda Technology, Huaqingbao, Changqu Technology... these GEM core hot concept stocks, not to mention their valuations, there is simply no PE below 100 times. From a technical perspective, it can be clearly seen that these stocks are already in the final risk game stage of speculation. If you rush in to take over at this time, there is a high probability that you will not get any meat and will be beaten."

"And..."

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

"Then these stocks, the most optimistic, can support 50 times PE, which is 4 times higher than the main board on average, which is about right? But what is it now? Generally it is more than 100 times... This is no longer the so-called 'new market, new valuation'. It is a pure bubble. After so many years of development in A-shares, 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 at 6,000 points in 2007."

"Looking at the liquor sector, although it has not risen much for the time being, it is definitely at the bottom. It is difficult to compress the valuation downwards. 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?" Gu Chijiang doesn't think from the bottom of his heart that it is a good idea to chase high market sentiment and chase popular concept stocks that have risen several times. 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 GEM bubble will burst, and core blue-chip stocks, white horse stocks, and even many blue chips have excellent performance on the main board and still have good future performance growth expectations. Stocks will definitely experience a reversal.”

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

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

"The future prospects are very beautiful, but we must also be able to survive into the future!" Team leader Lin did not agree with Hao Weilai's view. "The market trend has proved that the GEM is indeed the most profitable sector in the two cities, and... …Big funds from all walks of life in the market are indeed continuing to flow into the GEM.”

"The most important thing about investing 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 and I am alone', nor should we turn a blind eye to market trends."

"essentially……"

"Since July 16, we have increased our positions in the liquor sector on a large scale."

“Although the liquor sector has outperformed the Shanghai Stock Exchange Index as a whole, under the market expectation of a ‘difficulty reversal’, the overall trend is still lower than this expectation.”

"And, especially since last week."

"Observed from the disks of Jincheng Fenjiu and Qianzhou Moutai, the funds involved in various funds are also continuously flowing out. The pressure position in front of the market is locked, and there is no way to get past it. In other words... the liquor sector, if you want to It is simply unrealistic to become stronger independently.”

"On the other hand, the trend of LeTV, in which we have a partial position, is several times stronger than that of Jincheng Fenjiu, the largest holding of our fund."

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

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

I don’t understand the underlying logic followed by various funds in the market that continue to speculate on these so-called ‘new economy’ bubble stocks.

But he knows that the most important thing about investing is to follow the trend.

Now that the market trend has been unfolding for half a year, and the signs of a breakthrough in the main line of the market on the GEM are becoming more and more obvious, and the money-making effect of the aggregation is getting stronger and stronger, there is no reason to continue to turn a blind eye, even if you don’t agree with the logic. It is also necessary to adjust positions appropriately to balance the relationship between the two styles of the market, so that the fund performance will not be too miserable, seriously lagging behind the market conditions, and damaging investor confidence.

Gu Chijiang listened to Team Leader Lin's words.

Knowing that there were huge differences between the two people in terms of investment philosophy, he couldn't help but think for a moment and said: "From the actual trend of the market, the upward trend of the GEM is indeed stronger than that of the Shanghai Stock Exchange. What Team Leader Lin said makes some sense. , but... although I don’t understand short-term speculation, I also know that once a stock or a sector reaches the climax of emotion, it is basically not far from adjustment and end. "

"I admit that after the wave of emotional hype is over and the adjustment is completed, the market style may still develop centered on the GEM."

"But at this moment, chasing prices at high levels... is indeed inappropriate."

"Let's do this..."

Gu Chijiang paused and said: "When the next opportunity to adjust positions comes, that is, when market sentiment changes, we can appropriately increase our holdings of core popular stocks on the GEM to balance our positioning style, but before that ... Let’s keep our original positions unchanged for now!”

"After all, when you are mentally disturbed, you tend to make more mistakes."

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

Team leader Lin glanced at Hao Weilai who was hesitant to speak. Knowing that Gu Chijiang had made up his mind, he stopped talking. He nodded lightly in response, sighed secretly, and couldn't help but continue to sit in front of the computer, observing the two people. The market situation continues to evolve.

During the same period of time...

The same divergent scene as inside Jingda Investment also occurred in many large private equity and public equity institutions, and even in the self-operated investment departments of large financial institutions.

The Shanghai Stock Exchange Index and the ChiNext Index are showing an extreme tearing trend.

The internal analysts and fund managers of these large investment institutions suddenly split into two factions. The trend investment trend rose rapidly, while the value investment trend fell into a trough again, and even began to be ridiculed by many analysts, saying that "value investment" in China is simply an evil path.

And thanks to the rapid rise of "trend investment" and the temporary destruction of "value investment".

The huge number of retail investors and institutions trapped in the main board blue chips began to sell their positions and enter the GEM, chasing hot stocks and participating in the hype of hot money.

In this atmosphere...

The hot core stocks of the GEM index are becoming more and more popular, and the core concepts of the future "new economy" such as "new economy, new valuation", and the macro-level "financial technology", "financial innovation", "smart terminal equipment transformation wave", "mobile Internet", "mobile games", etc. have also been recognized by more and more large capital institutions, and more and more funds have been invested in these fields.

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

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

And the ChiNext Index rose sharply.

The "Internet Finance" sector once again led the concept sectors of the two cities, with as many as 6 stocks hitting the daily limit, and as many as 12 stocks with an increase of more than 5%; the "mobile game" concept and the "wearable device" concept followed the "Internet Finance" concept, and the sector rose by nearly 3%, still the core attack sector of market funds.

Of course, except for the best performing and most profitable sectors.

The overall market profit effect is not good, and the overall volume of the two cities has not been significantly enlarged. This surface... All the current market performance is just a stock game, not an incremental support.

And, among them...

Coal, nonferrous metals, steel, petroleum, chemicals, building materials, real estate... These pillar industries of the real economy have fallen across the board.

The entire market situation and its style.

There is a clear trend of "from real to virtual", from traditional fields to new economic fields such as "Internet" and "smart electronic devices".

Moreover, just after the closing...

When various financial media reported that the ChiNext Index had set a new annual high, and retail investors were discussing how many consecutive boards the Shanghai Stock Exchange Steel Union, a big monster stock, could go, and how far it could go, a senior analyst from "Huatai Junan" 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 time, it attracted the attention and heated discussion of the entire market, many well-known analysts, financial big Vs, and fund managers.

PS: There will be more to come, but it will be a little later!