Hexun Investment Advisor Yu Rongzhuo: After such a long period of sluggish A-shares, where are the opportunities? Now is the best opportunity!

Many friends who trade stocks always want to ask: Where is the next main theme? When will opportunities finally come? Honestly, I don’t know either. But we have a better answer: right now is the best. This isn’t stock-market “chicken soup”; it’s backed by cases.

　　Taking commercial aerospace as an example, looking back at last year’s November 24 to mid-December, the overall market was in a box-range consolidation period after a decline. From the index perspective, it seemed like there was no real opportunity at the time. But from the standpoint of the main theme, commercial aerospace had already started to show. Before the launch of the Long March 12, the market had already been trading and speculating on private rockets, the SpaceX concept, and other related targets; some individual stocks quietly doubled. Only after the launch of the Long March 12 did we see a full-blown breakout in directions such as “CPC-centered” stocks, the space industry chain, space computing power, and space photovoltaics. By then, everyone could see the so-called main theme, but the real opportunities had actually been brewing earlier. If you wait until after the breakout to follow in, because you didn’t have enough preparation in advance, it’s hard to have the necessary courage or understanding to seize the opportunity afterward.

　　This means that when the market is sluggish and everyone generally doesn’t look favorably on it, you should do your homework and stock up on those directions that others still haven’t been paying attention to—so that you can create an expectation gap. That’s where the real opportunity lies. When you wait until the stage where people simply follow the crowd, either you’ve already missed the best timing, or you lack sufficient knowledge to deal with the bigger room for upside that comes later. This is the core of the saying “right now is the best”—right now is the critical moment for preparation and positioning.

　　Turning back to the current market, directions that have performed relatively well recently, such as optical fiber and optical chips, have already gone through three or four waves of gains. It will be harder for them to become the main force going forward. Meanwhile, the “computing power + power” collaboration direction, which has been repeatedly active, includes both computing power and electricity. The electricity component not only covers traditional power-sector stocks, but also spans multiple sub-sectors such as new energy. Which sub-branch will become the main theme in the next phase? Which direction will be the first to ignite? The market needs to perceive and choose. But these sub-branches that keep emerging and the occasional opportunities when they strengthen all require advance preparation.

　　Someone might say there’s too much to prepare for. But in practice, as long as you focus on one big framework—such as “computing power + power”—you’ll find the scope isn’t as large as you imagine. Among the more than 5,000 stocks on A-shares, we need to narrow down step by step to two or three hundred through a dual filtering process of top-down and bottom-up selection, and ultimately lock onto ten to twenty core targets. This process is both funnel-like screening and a reflection of one’s understanding.

　　Only by doing a solid job of preparation can you, in the subsequent evolution, target your efforts with precision—concentrating limited capital on more exciting turning points.

(Editor-in-chief: Zhang Yan ）

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