A-shares have been in this position for more than 1 month.
It is estimated that many people are already anxious, counting on the stock market to rise every day!
So the idle heart is looking for so-called opportunities everywhere in the market.
Idle hands also began to operate frequently because of boredom.
Why can't you be idle?
Because people will think that they can get rich quick if they are diligent.
Yesterday I saw an interesting question that I thought was worth talking about.
1. Is the straight-line distance the closest?
Think about the question, if you were a captain and commanded a large ship from Europe to North America, what would you do?
Many people may say that they cross the Atlantic in a straight line without thinking about it.
From 1405 to 1433, Zheng He went to the Western Ocean seven times, forming thousands of kilometers of kilometers, with a huge fleet, dozens of ships, tens of thousands of seafarers, and it took two or three years to go back and forth each time.
It's easy to understand that in ancient times, the farther the journey, the larger the fleet.
But compare it to Columbus, and it's interesting.
In 1492, Columbus discovered the American continent, which was also thousands of kilometers away, but the fleet consisted of only three ships and more than 100 seafarers. The sailing time was also just over 1 month.
Why is there such a big contrast?
Here's why: it's not the shortest distance in a straight line.
The North Atlantic circulation helped Columbus.
It's a current that circulates clockwise between Europe, North Africa and North America.
Columbus traveled from Europe down to North Africa, and then followed the ocean current, from North Africa to the Gulf of Mexico in North America.
However, Zheng He did not have such luck.
From the point of view of distance, it is indeed closer to walk in a straight line, but the price paid is greater.
Of course, modern seafaring technology and power equipment are more developed, and it is possible to sail without the same as Columbus.
2. Is it good for the stock market to go in a straight line?
Admittedly, we particularly hope that the stock market will pull up a vertical line.
Hasn't this been how A-shares have skyrocketed and plummeted in the past few years?
But how many people have made money?
On the contrary, more people are losing money.
Compared with the slowly rising market of U.S. stocks, more people on the other side have actually made money. At least the 401K they deposit in their pension is constantly making money.
Therefore, there is really no need to rush about this matter.
Market volatility has its necessity.
Without going through the process of shock digestion, the foundation for the market to rise is not solid.
Looking at the long-term development of the stock market from a nautical perspective, we can see a lot of reality.
For example, our stock market is always rushing upwards like a doping.
However, eating too much stimulant hurts the body, and the side effects are particularly large.
Turning around, a plunge that made everyone despair.
After the body was injured, it could not recover for a long time, and it was rubbed on the bottom repeatedly.
Others are just scratching, but we are fractures. Break your muscles and bones for 100 days.
3. Why don't you make money in a straight line?
Many people often get obsessed, and if their stocks rise 5 times in one go, they will make a fortune.
It's weird.
There are many stocks in A-shares that have risen in this way, but in the end, few people have made money.
Isn't that weird?
The reason why you can't make money on this kind of stock is because it's a demon stock.
Surrender the monsters, how can we do it?
Not to mention a 5-fold increase, just a 30% increase, and the soles of your shoes will want to run as if they are greased.
Moreover, since it is a demon stock, how many positions do you dare to bet on before it opens?
You will never dare to use a heavy position, so the annualized rate of return calculated according to the total amount of money you make in the end is actually pitiful.
When you run away, it will continue to rise, and I am afraid that you will not be able to control the temptation and chase it with a heavy position.
In the end, I spit out the money I made before.
Think about the beginning, when the stock market rose from 998 points to 3,000 points, how many people didn't run halfway?
However, when the stock market rose to 4,000 points and 5,000 points, these people shouted that the Shanghai Composite Index was 10,000 points and rushed back.
In the same way, when it falls, it is beyond imagination. Let the people who buy the bottom feel the huge losses in the account first.
What about falling out of value? It continues to fall nonsensically.
And then a lot of people cut the meat at the bottom.
Therefore, only a slow bull market with reduced volatility can make more people money. (But there are still a few who make money)
4. What is a high-quality asset?
If you ask what constitutes a good asset.
I'm afraid many people will be stunned.
It's not that complicated.
You can think about it, if you had a sum of money that asked you to buy an asset and you were not allowed to sell it for 20 years, what would you choose?
I guess the land is the best choice, especially in the core area.
Why?
First, it won't depreciate;
Second, it is likely to appreciate, but the rate of appreciation is relatively slow, not a sharp rise and fall;
Third, it can also earn interest (rent out), and even if it is not sold, it will have cash flow income;
Fourth, it has a very long life cycle (unless the entire population of the area moves out)
Therefore, land is the real hardcore asset, but our country does not allow the purchase and sale of ownership.
By analogy, we can look for some sub-prime assets, such as houses in core locations and stocks with strong moats.
It can be seen that if the volatility of A-shares decreases in the future, dividends increase, and the index rises slowly, it will not be far from high-quality assets.
Have you noticed that since the beginning of this year, the volatility of the CSI 300 has been compressed to a very low level?
Someone is deliberately pushing behind this.
Its purpose is to turn the constituent stocks of the CSI 300 into high-quality assets, so as to attract a large number of long-term funds and allocation funds to hold them for a long time.
Only in this way can A-shares be turned into a reservoir of wealth and assume the role of savings. Even in the future, it will take on the role of pension.
However, depending on the position, the quality assets in people's minds are different.
For those retail investors who have tens of thousands or less than 500,000 in their hands, they don't think that such assets are high-quality assets.
What they want is to skyrocket and plummet, and then delusionally want to get rich overnight.
And individuals and allocation institutions with a lot of money in their hands have never wanted to get rich overnight by relying on the stock market.
The most interesting thing is that most people say that they hope that A-shares will slow down and grow like U.S. stocks.
But in fact, my heart is eager to skyrocket.
At present, A-shares stand at this crossroads, and the management is interested in building the CSI 300 into an index like the S&P 500.
And those who like to play heartbeats to make quick money, go to the garbage heap to stir up.
The reward is voluntary, and 1 cent is silently supported, haha!
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