The market trends in the past two days can be described as bipolar. Hong Kong and A-shares plummeted the day before yesterday, then violently rebounded yesterday. In particular, the Hang Seng Tech Index, representing the new economy, retaliated with an 8% surge, marking the largest single-day increase in index history. It's truly extraordinary.
After experiencing sharp drops followed by sharp rises, many friends may be affected by the extreme market trends, leading to wrong investment decisions.
Like the heavy-volume plunge two days ago, some panicked and sold off, while yesterday's light-volume surge led to impulsive purchases, fearing to miss out on the rebound market.
In such frequent buying and selling, not only incur various costs, but also commit the investment taboo of selling low and buying high, in the end, it turns out to be a waste of time and effort, truly not worth the loss.
Investing is like going to war, you need to plan and strategize in advance so that when unexpected changes occur on the battlefield, you can adapt accordingly and respond to all kinds of situations.
A good strategy and plan account for half of success. Below, we will comprehensively develop your investment response plan from three aspects: predicting the trend of the large cap this year, setting investment portfolio style, and allocating positions for individual stocks and industries.
1. This year is a volatile market
Compared to the unilateral uptrend market last year, this year is a volatile market with a large range of fluctuations.
Since 1994, A-shares have never experienced three consecutive years of upward market trends. As long as there are two consecutive years of gains, the third year will be a loss, hence the "can't surpass two years of gains" curse.
As shown in the above chart, the years 2019 and 2020 have already seen two consecutive years of gains. According to...