I wrote a similar article about future trends before.
It was also in February this year, when micro-cap stocks fell sharply.
Many retail investors do not think so, and always think that the market has no retail investors, and the sky is about to fall.
The capital market is a game of rights to protect capital, not a game to protect small and medium-sized players.
When you go to the casino, does the dealer protect his own interests, or does he protect the interests of gamblers?
Of course, if there are very few players who come, resulting in worse and worse business, the dealer will also find ways to attract customers and improve their environment.
In addition, the capital itself must protect the large players, not the small players.
Any system is introduced for the whole market, not for a specific group of retail investors.
In this market, as more and more funds are deliberately introduced, the demand for retail investors will become smaller and smaller.
It's like, for a period of time, retail investors collectively did not subscribe for new shares, and in the end, the public offering paid with retail investors' money.
Some people say that retail investors should collectively abandon public offerings, but if you look at the data, you will find that in the past two years, the proportion of institutional funds in public fundraising has been steadily increasing.
There are some trends that are irreversible and are destined on the day the registration system arrives.
Regardless of whether retail investors are ready or not, they will come.
Here again, what have these junk stocks been doing in the past six months, and why has it led to such a result.
In September last year, the market issued a number of policies, one of which was to restrict major shareholders from reducing their holdings.
The new rules mention that if major shareholders do not pay dividends, there is no way to reduce their holdings.
There is an important point here, the vast majority of companies with small market capitalization, regardless of their performance, will introduce market makers, that is, market makers, to increase their market value and facilitate their own high-level reduction.
When the matter of reducing holdings and cashing out is in vain.
The value of the market makers is gone, and they are going to retreat.
There are some market makers, which are traditional market makers, and another part, which is quantitative funds.
So, at the end of last year, speculating in demon stocks became a trend, and major players quickly pulled up and shipped, and it was booming for a while.
And at the end of January this year, it was the first time that the high level in this direction peaked, and it was also the first large-scale strangulation of those greedy retail investors.
This time, the national nine articles just became the fuse, and this part of the funds was stifled for the second time.
In February and March, it was another devastating blow to retail investors who still reported hope for loss-making stocks, micro-cap stocks, and small-capitalization stocks.
The fall of any market has not been achieved overnight, just like 5178 down, the market has also experienced 3 stages of 1,000 shares falling limit, which is a truth.
De-retailization is a slow process, and once it starts, there is no turning back.
It is a law that immature retail investors are slowly eliminated, and this law is irreversible.
In any mature market, the proportion of retail investors is very low, and they are all borrowing public funds and ETF funds to make investments.
Even A-shares with Chinese characteristics cannot avoid such a process in the process of development.
However, the capital market will not be wiped out, and they will leave investment channels for mature investors.
There are about three ways for retail investors, or about three ways for sophisticated investors to invest in the market.
1. Do the index steadfastly.
Index ETFs will become the mainstream of the market in the future, and this general trend has not changed at all.
In mature foreign markets, retail investors also invest in index funds.
The market has taken this step out of the registration system, which means that the investment of retail investors is indexed.
Because the index will not step on thunder, the index will not choose junk stocks, and the index risk will be lower.
The vast majority of the stocks included in the index are "high-performing" stocks, and the overall return of the index will be better than the average of individual stocks in the market.
The so-called foreign stock market is a big bull market, but in fact, it is also an index bull market, not a bull market for all stocks.
The registration system will definitely be mixed with a lot of garbage on the market, and these garbage must be the mines of retail investors.
In the future, there will be fewer and fewer opportunities to make quick money, but in fact, it will standardize the overall investment of the market and be more friendly to retail investors.
The volatility of the index will be smaller than that of individual stocks, which means that the probability of retail investors wanting to get rich is lower.
But on the bright side, the losses brought by the index will be significantly less, and the profit and loss will be the same.
2. Embrace high dividends.
There is another way for retail investors, which is not called stock speculation, but investment.
That is, buying high-dividend stocks in a group and waiting for the dividends to be cashed.
Of course, high-quality listed companies can not only pay dividends, grow their performance, but also give a good return on capital, that is, the stock price rises.
In fact, retail investors who invested in the direction of high dividends in the early years have already made money.
Take a closer look at the increase in CSI dividends, and you will know that this direction is not as bad as everyone thinks, with an annualized return of more than 10%.
You know, where to invest now, it can give you relatively stable and low risk, about 4% dividend + about 6% asset appreciation return.
Even if there are short-term fluctuations, the dividends given will not be less.
In this regard, it can outperform many retail investors who are busy doing short-term trading.
3. Stir-fry the faucet in a group.
The last one is actually the current mainstream investment method, which can also be used for a long time in the future.
Stir-fry the faucet in a group.
Each round of the market has a main line, a leader, and a group.
For example, the biggest hot spot in this round of the market is the low-altitude economy, so just hold the leader of the low-altitude economy and hold it in stages.
But as long as the hot spots are still there, the faucet will not die.
Holding together refers to the fact that retail investors and institutional funds are holding together, and it is no fun to simply hold retail investors.
Embrace the mainstream investment institutions, select the industry leader, and then wait for the market to finish.
However, in the end, which direction is the main line and which is the leader, retail investors must have their own ability to identify.
In the future market, those who can survive are mature retail investors.
The so-called de-retailing is not the elimination of retail investors, but the institutionalization of retail investors' investment.
There will be fewer and fewer irrational retail investors, and they will gradually be cleared by the market, and those who will survive are those who are relatively rational.
They are more rational in their investment in the market, and they are closer to professional investors in terms of stock selection, holding cycle, and trading style.
Have you found that there are very few retail investors in the post-90s and post-00s, and there will be fewer and fewer retail investors in the future.
The mission given to retail investors by the times is changing, and the word retail investors will slowly withdraw from the stage of history.
Of course, for those retail investors who survived, the future market will be more standardized, the ecology will be better, and there will be more opportunities to make money.
Dodging the fiercest scythe of the moment is the victor of an era.