Recently, A-shares have been in a continuous downturn, and many small partners have said that "continue to dynamically clear my stock account balance", and pessimism has spread.
However, the stock proverb cloud, the pessimist is right, the optimist is successful.
Translate.
The essence of investment is to invest in the national fortune and the future, and I believe that the future economy will get better and better, and the profits of excellent listed companies will become higher and higher.
In an active, healthy, globalized economy, you invest in good companies and are willing to grow with them, and the final benefits may not disappoint you.
If you think the economy is going to get worse and the listed companies are going to get worse, the stock market may not be for you.
So in essence, pessimists are going against investment and ultimately it's hard to make money from the market. (Short investment is not within the scope of this article)
In the stock market, it's hard to stick to being an optimistic investor. Especially in the recent ups and downs of A-shares, optimism is more like a kind of A Q spirit, and it is a last resort.
True optimists, how do they understand the market?
In the repeated callbacks, what do you see?
✦✦
01
They see an opportunity to adjust
The market is always changing, and optimists can see the positives, especially in times of corrections and bear markets. For optimists, a bear market is not scary, it is just a build-up of strength for the next bull market.
The fall gave them the opportunity to "get in the car" again.
Bull markets often come quickly, and many people are aware of hindsight, or have "perception" and are afraid to chase high and dare not enter the market.
After the fall, it gave the early short positions and light positions the opportunity to enter.
The market, like a pendulum, does not swing in one direction forever. Once again, the opportunity lies ahead, and those who realize this earlier will benefit from it.
Many good stocks that are too expensive to get their hands on when they rise have returned to reasonable or even cheap prices, allowing people with hearts to buy at lower prices, thereby creating greater profit margins.
Take the recent adjustment of the A-share market as an example.
As of April 20, of the 4,682 stocks in the market this year, 3,809 stocks have fallen, accounting for 81%. Those who fell by more than 20% accounted for 40%.
Stocks have been up and down since the beginning of this year
Note: The statistical object is the individual stocks that have been listed before 2022
Statistical interval: 2022.1.1—2022.4.20
Source: Wind
Among them, there are many high-performing stocks and potential stocks that have been "wrongly killed".
When the day is up and down the gold (when it falls sharply), it should be picked up with a large bucket instead of a small ring.
— Buffett
The decline gives those who have the heart to learn, examine and accumulate experience.
Without the hustle and bustle of the bull market, you can calm down and examine your investments:
Is it too greedy to sell or not to sell?
Is it too sloppy to follow the trend without doing enough research?
Is there a lack of patience and frequent stock swaps that lead to "making money on the index and not making money"?
/
Some say that bull markets are the reasons stupid investors lose money; bear markets are the reasons why smart investors make money.
Making money here not only means that the bear market can "accumulate" cheap and good stocks, but also "forced" to learn a lot of investment common sense and passive growth.
These experiences and thinking make us more sober to see our own shortcomings, more in awe of the power of the market, and more prepared to meet the ups and downs of the market.
✦✦
02
They work hard and don't borrow money to speculate in stocks
Investing is only part of the life of optimists; the assets that are invested in the stock market (funds) are only part of their assets.
Most of the optimists have jobs, few are professional shareholders, and labor income such as wages is the main source of income. Stock speculation is just one way to win higher returns, not all.
They hardly borrow money to speculate in stocks.
The amount of funds is large, will do asset allocation, stocks, funds are only part of it; the amount of funds is small, even if the heavy position in stocks and funds, these money is only a part, does not affect the emergency use of life.
They gamble too little, they don't put all their wealth in the stock market, and they don't put all their hopes on the stock market.
They have jobs to do security, and they have a life to "enjoy".
The stock market is not the whole story of life.
“
If you know what's going to happen, you'll be financially prepared. You can't overuse leverage, because you'll be cleared out during the time you make a mistake.
If you invest in debt 1/3 of the time (making mistakes), then just one bear market is enough to knock you out. You won't be so unlucky every time, but I'd rather not borrow anything.
—John Templeton
”
✦✦
03
They have investment guru "support"
Rather than charging "tuition", selling "combinations", predicting the market, and often fighting on the Internet, optimists are more willing to listen to the decades of experience and heartfelt words of investment gurus.
Stock God Buffett
☆ I feel like a very young man who came to the daughter country. The time has come to invest. (When U.S. stocks hit rock bottom in 1974)
☆ If a stock falls, I will feel lucky. Most people aren't like that, they don't like stocks falling, but I do.
I like my stock going down, and if I'm going to buy a burger that's 1 buck today and 50 cents tomorrow, then I'd prefer a 50 cent burger tomorrow. (2010 Exchange Meeting)
☆ When the stock market is falling, do not pay close attention to the performance of the stock market.
If an investor is worried when the stock market falls, and then thinks of throwing away his stock when the stock market recovers, then such an investor will not end up with the desired return. (Interviewed by the media in 2016)
☆ Although the market is usually rational, occasionally the market will have crazy moves.
An investor doesn't need much wisdom, or a degree in economics, or a good understanding of Wall Street jargon to seize an opportunity. All investors need is to ignore the ability of the masses to panic or frenzy and focus on a few simple fundamentals. (2018 Letter to Shareholders)
Bridgewater Fund Founder Dalio
☆ Investors are always prone to make the decision to sell when the market falls, but succumbing to fear is not a wise strategy, because doing so will not be successful.
Conversely, when the market is falling, investors need to do the opposite, that is, you may need to sell when you no longer feel fear; when you feel fear, you may need to buy.
☆ Wise people always focus on stable fundamentals when they experience various ups and downs; while frivolous people follow their feelings, react emotionally, rush to hot things, and give up immediately when they are not hot.
☆ The best way to invest successfully is not to try to interpret market fluctuations, but to calmly face market fluctuations.
Quantum Fund co-founder Jim Rogers
☆ I myself have experienced a lot of stock market declines, and I will buy every time I fall.
In the 15 years I've been investing in China, I've seen 3 or 4 stock market declines, and each time the air is full of fear, but I've kept calm. (Interviewed by the media in 2015)
☆ Please remember that if you want to be a successful investor, then you have to learn market fear, you can't be afraid, you have to go against others, you have to be different.
☆ The best time to buy stocks is when everyone is extremely disappointed in the stock and sells every share in their hand.
☆ In another year or two, people will look back at this big fall, and everyone may think that it is not as bad as they thought.
Legendary fund manager Peter Lynch
☆ The big drop is actually a good thing, let us have another good opportunity to buy the stocks of those very good companies at a very low price.
☆ There is nothing surprising about the stock market falling, this kind of thing always happens again and again. Winter is coming, will summer be far away?
☆ On the stock market, time is in your favor. When the stock market is down, if you have money and you are not worried about falling, you can increase your position, and you should not worry about a temporary decline.
What you should be worried about is what will happen to stocks in 10 or 20 years.
☆ If you are in the market, then you must understand that the market will fall. Every few years, there will be a 10% correction in the market.
A pullback is a euphemism for losing a lot of money quickly. A bear market is a 20-30% decline. These are going to happen, and as for when it starts happening, no one knows. If you can't afford this, you don't want to go into the market.