"Fool investment", "lazy financial management", "brainless follow-up investment", I don't know if you have seen such a description in the marketing of wealth management products. Fu Er here advises everyone to be more thoughtful and prudently understand the meaning behind these words, because they may be "wise and foolish investment", "lazy and not lazy in financial management", "seemingly brainless but actually abacus to play Mars and follow-up investment".
Fu Er has always believed that investment and financial management is a mental activity that requires rationality and wisdom, or should correct the mentality, study carefully, not only respect the wealth accumulated in their hands, but also objectively recognize the laws of the capital market, and must not blindly make investment decisions, after all, the money earned by luck will eventually be lost by strength......
So do you admit that investment and financial management is a technical job, and there is a learning curve from beginner to proficient. Just like when you learn any ball game, you will always experience the imitation of the action of drawing a scoop according to the gourd at the beginning, and finally learn to see and listen to all directions, through the details of the opponent's actions that are not easy to be discovered by ordinary people, "predict your prediction", and take the first step to reach the tricky hitting location, and receive a chic and calm ball.
According to Fu Er's observation for many years, it is the same in investment and financial management, unlike entry-level players who rely on "inertia" to make decisions, advanced players are better at grasping the "information gap" and reaching the hitting point earlier than others.
Here's an example. For example, when it comes to the Internet of Hong Kong stocks, most people have the impression that high growth and high elasticity, coupled with a high valuation of dozens of times, make investment extremely risky. Guests who have a little track of this sector may understand that in the past few years, the performance has been relatively sluggish due to factors such as market concerns caused by strict supervision of the industry and domestic macroeconomic pressure.
Taking this information as a known investor, there is a high probability that they will not consider the Hong Kong stock Internet, and it is not even a spare tire. However, from another perspective, the investment logic of the Internet of Hong Kong stocks may be completely different.
For example, let's take a closer look at the Hong Kong stock Internet index. One of the major characteristics of this index is that the concentration of individual stocks is very high, concentrated in communication services, information technology, non-consumer goods and other industries.
Source: WIND, as of April 12, 2024. The industry distribution of index constituents is node data and may change in the future.
Some of these constituent companies are related to daily entertainment media, some are related to optional consumption, and some are also related to software platforms that are frequently used by everyone, and these service-oriented consumption has basically been integrated into our daily life, becoming one of the most important components of the macroeconomy, and also highly correlated with economic recovery.
From the public PMI breakdown data, it can be found that an important structural bright spot in our economic recovery since last year is that the recovery of service consumption is faster and faster, better than the manufacturing and unofficial service industries.
Therefore, under the main logic of further economic recovery in the future, the performance of the Internet industry may be very worth looking forward to in the general direction.
Source: WIND, BOC Securities, 2024/4/15
From a more granular dimension, the current PE-TTM of the Hong Kong Stock Connect Internet Index is 19.46 times, which is located at the historical quantile of 10.59%, and the valuation is at a relatively low historical level.
Source: wind, as of 2024-04-19. Note: The historical performance and valuation level of the underlying index tracked by the fund are not indicative of its future performance and do not constitute a guarantee of the performance of the fund
Of course, this does not constitute a direct reason to start, and the more important point is that there has been an important change in the business strategy of Hong Kong-listed Internet companies. From burning a lot of money to expand new businesses in the past, and not hesitating to fight price wars with peers, to now publicly stating in the annual report that it will shrink loss-making businesses, or focusing on improving its main business and profit margin compared to businesses that are not advantageous compared to competitors. At the same time, some Hong Kong-listed Internet companies have also begun to focus on improving shareholder returns, and many companies have launched buyback plans since last year.
Isn't this the "low valuation" + "high dividend" that everyone has been paying attention to lately......
I hope that everyone can improve their ability to discover the "information gap" on the road to investment and financial management, and become their own advanced players as soon as possible!
Of course, you can also choose to be a man of action when you see this, pay attention to it-
Closely tracking the Hong Kong Stock Connect Internet Index is: Hong Kong Stock Connect Internet ETF, and over-the-counter players can consider the Wells Fargo CSI Hong Kong Stock Connect Internet ETF initiation connection ~
Risk Warning: The Fund closely tracks the underlying index, and its performance will fluctuate with the fluctuation of the underlying index, and will also be greatly affected by the fluctuation of individual stocks with a high index weighting. The market is risky, and investors need to be cautious. This product is issued and managed by Wells Fargo Fund, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. Investors are advised to pay attention to the unique risks of overseas ETFs and the risks of investing in Hong Kong Stock Connect, and make prudent investment decisions on the basis of a comprehensive understanding of the fund's risk-return characteristics, operational characteristics and the suitability of the sales agency. The historical performance of the underlying index tracked by the fund is not indicative of its future performance and does not constitute a guarantee of the performance of the fund, investors are advised to pay attention to the investment risks of the index fund, including but not limited to the deviation of the return of the underlying index from the average return of the stock market, the volatility of the underlying index, and the deviation of the return of the fund's portfolio from the return of the underlying index. The Fund invests in the underlying stocks of the Southbound Stock Connect and will be exposed to the unique risks arising from differences in the investment environment, investment targets, market regimes and trading rules under the Southbound Trading mechanism. CSI Hong Kong Stock Connect Internet ETF Feeder is a target ETF feeder fund, which will face risks such as the management and operational risks of the target ETF, the specific risks of the target ETF, and the technical risks of the target ETF.
Investment is risky, and fund investment should be cautious.
Before investing, investors are advised to carefully read the Fund Contract, Prospectus and other legal documents. The fund manager promises to manage and use the fund assets in an honest and trustworthy manner, and does not guarantee a certain profit, nor does it guarantee a minimum return. The performance of other funds does not constitute a guarantee of the performance of the Fund.
The above information is for reference only, if you need to purchase relevant fund products, please pay attention to the relevant regulations on investor suitability management, do a good risk assessment in advance, and purchase fund products with matching risk levels according to your own risk tolerance.