Chapter 860 The Importance of Defensive Strategy!

"There is still about a month left. As long as we can correctly follow the market rhythm and control the retracement of net value, I think our performance ranking in the industry at the end of the year may not be unsatisfactory." Gao Xiang said with a smile, "In the main rising stage of the market, when the market conditions are good, everyone is competing for the ability to grasp the main line, the courage to hold a large position and the corresponding stock selection ability.

However, when the market conditions are not good, or when there is a big difference between the long and short positions in the market.

Then what everyone is competing for is not the ability to grasp the main line, nor the courage to hold a large position and the corresponding stock selection ability.

But position control and corresponding risk management.

In our industry, there are many players who have very good performance in the market boom stage, but often these players do not perform well when the overall market conditions are not good.

When there is a big difference between the long and short positions in the market.

The net value retracement of the main fund products they manage will also be very large.

Take this year's market trend as an example. Due to the arrival of the bull market, many in the early stage of the bull market At this stage, asset management institutions and corresponding fund products that grasp the core themes of "big finance", "big infrastructure" and "military industry" will definitely have good performance, but... now, the overall market trend and pattern have begun to change.

In the entire market, there are very few institutions that can be as sober as the main capital of the "Yuhang system" at any time.

More people will still have path dependence.

This is the so-called common source of profit and loss.

As long as the market continues to have so many short divergences until the end of the month.

I am sure that in the major adjustments of the previous popular themes of "big finance", "big infrastructure", "military industry" and "film and television media", there will be no shortage of institutions with significant declines in performance and net value.

Therefore, if we can do our best to defend well at this time.

Then, it is highly likely that... we may be able to go further in the industry performance ranking at the end of the year, and then achieve our previous expected goals, which is also possible. "

Chen Yihe heard Gao Xiang's words, pondered for a moment, but quite agreed.

Indeed, an excellent fund product, an outstanding asset management institution.

The most important thing is not the ability to achieve results when the market is good, but the ability to control risks and drawdowns when the market is bad.

The so-called first condition in the financial market is to stay alive.

When facing the two tests of profit and survival, it is obvious that staying alive is more important.

After all, there is no end to the money in the market, but if you don’t control the risk and don’t learn to use corresponding strategic defense when the market is bad, then... although you can’t make all the money, you can lose it all.

He knows many well-known private equity institutions in the industry, and even many public equity funds.

Many of them are very good at achieving results when the market is good, and they can often bet heavily on the core hot main line, thereby grabbing the maximum excess profit in the market.

However, this type of asset management institution is indeed the most likely to die in the extreme market trend.

At least as far as he knows, the bear market for several consecutive years has eliminated 90% of the private equity institutions in the previous few years of the market.

Although their "Yihe Capital Company" is not particularly good in terms of performance.

In terms of the change of the main market trend, they are not as sensitive as many other institutions, but they have survived in the industry for more than five years and have been able to continue to win the trust of some investor groups, relying on their mature and steady operating style and relatively conservative investment strategy.

They are not the best in the industry, but they strive to live the longest.

Because the asset management industry actually emphasizes the principle of "survival of the fittest".

"Okay!" Chen Yihe said with a smile, "Then follow what Gao Xiang said and adjust the trading strategy in time. Continue to reduce our holdings in the major main lines of 'big finance', 'big infrastructure', 'military industry', and 'film and television media' to prevent the net value of our fund products from being kidnapped by the continued decline of these major main lines.

As for our related holdings in the three major main lines of 'big consumption', 'mobile Internet', and 'smartphone industry chain'.

You can take a look first, and then reduce your holdings appropriately to continue to reduce our holding costs.

In short, since the market avalanche effect caused by the large-scale reduction of positions and profit-taking by the 'Yuhang system' has already occurred, and the overall chip structure of the core main line fields such as 'big finance', 'big infrastructure', 'military industry', 'film and television media', etc., which supported the continued rise of the market, has loosened.

Then, we really can't have any illusions anymore.

Just like you said.

Although our institution lacks some sharpness in offense, it is not as sensitive and decisive as other top institutions in the industry.

However, defense is our advantage.

If the depth and time period of the market adjustment exceed the expectations of a large number of investors in the market.

Then, this is back to our advantage.

And of course, we should make good use of the opportunities of market correction and retracement, and make corresponding strategic changes and position adjustments.

Even make predictions on the future main market direction.

Of course, at present, whether the market will change in the direction of our expectations is still unknown. At least the position of 3,500 points of the Shanghai Composite Index still has a strong support role. "

Gao Xiang pondered for a moment and responded with a smile: "I think the Shanghai Index at 3,500 points is very likely to be a bull trap."

"Why do you say that?" Chen Yihe asked in surprise.

Gao Xiang thought for a while and continued: "First of all, 'big finance', 'big infrastructure', 'military industry', 'film and television media'... these groups led the market in the early stage and supported the core main lines of the market. The chip structure has been collectively loose, and there is still hanging over the head the expected pressure of selling from the huge main force of the 'Yu Hang System'.

So, as you can imagine...

It is absolutely impossible to end the adjustment of these core lines in the short term.

Furthermore, the expectations of these mainline areas and related popular stocks have been raised in advance.

At this time, without the further stimulation of these popular heavyweight stocks and above-expected performance, its future expectations will be difficult to support the current stock price and valuation.

And these are the core main areas where everyone expects a surge in performance.

If the expected performance is really to be realized, according to the time point of disclosure of the annual report forecast, it will be January anyway.

In other words, in the short term, especially in the current month of December, the market does not have strong expectations that can stimulate and support a rapid rebound in the market.

In other words, this time is basically a vacuum period for news and expectations.

The central bank has just cut interest rates and required reserve ratios, and released a big move to the market. It is foreseeable that there will be no such strong benefits in the short term.

Generally speaking, market expectations are currently in a process of gradual decline.

At the same time, on the macro level, there are no strong positives to further stimulate the market.

In this way, with the two factors influencing each other, how can the index be sustained in the short term? And... even with the most optimistic attitude, the incremental funds brought by the central bank's interest rate and reserve requirement cuts will not be so fast.

There is also the decline of the money-making effect of the market.

The long capital groups who originally had ideas and wanted to rush into the market to raise funds would also hesitate.

After all, the stock market is the same as the property market. Everyone prefers to buy up rather than down. This is a human weakness that cannot be overcome.

Therefore, I think the Shanghai Stock Index will be at the next 3,500 points.

Absolutely can't hold on.

Capital groups who want to grab a rebound or provide support at 3500 points will most likely fall into this bull trap.

It’s the ‘Yuhang Department’, which is the main source of funds. I don’t know what the current situation is.

If this main force of funds has indeed just begun to reduce positions and take profits based on the market trend the day before yesterday, then the next few days in the market may be quite difficult.

‘Big finance’, ‘big infrastructure’, ‘military industry’… this series of main lines.

Under the strong selling pressure of the main funds of the 'Yu Hang Series', the stock price will definitely fall too far and fall out of a deep pit.

However, if the movement of the main funds of the "Yuhang System" in the early stage on the market is the end of the reduction of positions and profit taking of this fund, and the large-scale reduction is the tail position.

The market's downward adjustment trend should be much gentler.

There may even be repetitions.

But no matter what...the market's adjustment tone is currently set.

With the huge volume of market transactions on Monday, as long as the market volume cannot exceed it and the concentrated bullish sentiment cannot be reversed, then the market will not be able to return to 3800 points, let alone hit 4000 points. The only option is to adjust downward and wash the market downward to clean up the floating chips at this stage.

Only in this way can the floating chips on the market at this stage be cleaned up.

Wait until the two cities shrink to the same level again.

Only then will the market usher in a new turning point, and the bull market will embark on a new journey.

Before that, I think we can safely and boldly reduce our positions and take profits, and just sit back and watch the market calm down. "

"Okay, sure!" Chen Yihe saw Gao Xiang's interpretation and analysis of the two markets becoming more and more sophisticated and logically clear, and couldn't help but admire him, "If the next market really goes as you said, then ... Even if we accurately follow the market rhythm, next year... we will be able to let you manage a fund product alone. "

Gao Xiang couldn't help but smile when he heard Chen Yihe's words, and said with a smile: "Thank you, Mr. Chen."

Chen Yihe chuckled and said, "Why are you thanking me? I have always known how to make good use of others. Since you have this ability, I must build a stage suitable for you."

As the two continued in-depth discussions, they decided on subsequent trading strategies and trading plans.

At this moment, in all the major stock investment exchange forums, communities, post bars and other places on the Internet where retail investors gather for discussion, everyone is already showing a pessimistic mood about the market trend in the afternoon and the subsequent market trend. Emotions are increasingly starting to overwhelm bullish sentiment.

"Oh, I thought the market would rebound strongly today, but I didn't expect another round of sharp decline."

“There was a strong rebound in the morning, but I don’t know why it completely reversed towards midday.”

"It feels like without the support of the core market trends of 'big finance', 'big infrastructure' and 'military industry', the market seems to have lost its soul and has no idea where to break through."

"It's not that the market lost its soul because of the lack of the main lines of 'big finance', 'big infrastructure', and 'military industry', but the lack of the support of the main funds of 'Yuhang system' headed by General Manager Su. The market lost its soul. Without the main funds of 'Yuhang system' to guide the market, other main funds in the market have no idea where to concentrate on trading. This is weird."

"Alas, it seems to be true. The 'Yuhang system' funds headed by General Manager Su not only have a great impact on us retail investors, but also on a large number of main funds in the market!"

"That's for sure. That's General Manager Su, a person who created a profit legend in the market."

"It feels that if the market continues to go this way, it will continue to fall sharply."

"The Shanghai Composite Index is about to fall to the 15-day line, and there should be a short Temporary support, right?"

"The 15-day line will definitely not hold up. Sigh... I shouldn't have bought more stocks yesterday to spread the cost. Now I feel more and more passive."

"The two main lines of 'big finance' and 'big infrastructure' have been really terrible in the past three trading days."

"Not only these three main lines, many stocks that rose sharply in the early stage have gone out of the trend of continuous limit down in these three trading days."

"Yes, there are really quite a few stocks that have been on the board for two consecutive days."

"Alas, it feels like Huake Suguang, Lanshi Heavy Equipment, Great Wisdom, Flush, Shanghai Steel Union, Yingkou Port, Aerospace Development... These hot stocks in the early stage are all useless."

"In a word, stay away from stocks that have skyrocketed in the early stage!"

"At this time, it is still safer at a low level."

"Low level is not safe either. Today, Pingmei Energy, the fucking Chuang A new historical low."

"The stocks in the coal sector are just weird."

"Shenhua Coal Industry is almost falling to the vicinity of net assets. I feel that the 'coal' sector is the sector to avoid the most."

"At this time, it is not safe to buy anything."

"It is still more appropriate to go short or clear the warehouse. Alas... it is still necessary for the 'Yuhang system' headed by General Manager Su to speak out, or to express its position on the Dragon and Tiger List."

"The 'Yuhang system' has reduced its positions on a large scale to stop profit, which is already a fact. How can it express its position?"

"Not necessarily. Yesterday, the relevant trading seats of the 'Yuhang system' headed by General Manager Su did not appear on the Dragon and Tiger List of the two cities."

"Now, everyone should be guessing the trading strategy and motivation of the 'Yuhang system' headed by General Manager Su?"

"If the 'Yuhang system' headed by General Manager Su can announce a round of net value and specific position data, All right. "

"Hehe... I think that the 'Yuhang Group' headed by President Su will no longer publish the holding data in the future. After all, this will easily cause unnecessary market following and scrambling, which is a bit like manipulating stock prices."

"I also think that at most the net value trend will be announced, and that's enough."

"Anyway, whether it is to announce the net value or the holding data, I think... the simplest point is that we just buy and sell according to the investment strategy of the 'Yuhang Group' headed by President Su, and there is no need to think too much about the rest."

"Yes, it should be enough to keep an eye on the Dragon and Tiger List."

Accompanied by a group of retail investors on the Internet, the discussion on the morning market trend and the speculation on the motivation of the 'Yuhang Group', the main market capital.

Unconsciously, the market trading time has passed 1:00 p.m.

After a one-and-a-half-hour lunch break, the two markets once again ushered in a continuous bidding trading period. (End of this chapter)