Going all-in for slow wealth｜Day 108, starting from 5 W

Today, all three major A-share indices opened lower and continued to drift downward throughout the day, with no clear rebound. Growth-oriented sectors were broadly hammered. The entire market showed a significant “everyone down” effect: the combined trading value of the Shanghai and Shenzhen markets for the day was 2.82 trillion yuan, down by more than 5700 billion yuan versus last Friday, indicating an especially strong risk-avoidance posture as funds pulled out. Only 800 stocks rose across the board, while more than 4,600 stocks fell—making the broad sell-off feature reach an extreme. Northbound funds posted a large net selling throughout the day, and the technology growth sector became the core direction for funds to dump. [Taoqiba]

Meanwhile, sentiment in overseas markets sank to rock bottom. South Korea’s KOSPI index closed down 8.95%, and during the session the decline exceeded 8%, triggering market-wide circuit breakers. Trading was halted for 20 minutes—this was the seventh time a circuit breaker was triggered this year. Heavyweight stocks SK Hynix plunged by more than 15% and Samsung Electronics fell by more than 10%, directly spreading panic across the global semiconductor industry chain and causing fear to ripple outward. Japan’s Nikkei 225 also dropped 1.92% in tandem. In the Asia-Pacific region, markets were under pressure across the board. The escalation of the Middle East situation is the core trigger for the rise in global risk-avoidance sentiment this round.

On the sector level, the aerospace and defense military sector—which had led gains last Friday—saw collective profit-taking today. Sub-sectors such as commercial aerospace and satellite navigation experienced mass limit-downs, with clear signs that capital was escaping after booking profits. The semiconductor sector suffered a severe blow: the industry index saw daily net outflows of more than 420 billion yuan. Storage chips and equipment materials led the decline among sub-sectors, and multiple key names such as Zhaoyi Innovation hit limit-downs. The sentiment contagion from the overseas technology stocks’ rout directly struck sector sentiment. Only defensive sectors such as banks, traditional Chinese medicine, and oil and gas managed to stay green against the trend, making the risk-avoidance profile extremely evident.

After last Friday’s deep-tech “board blow-up” triggered a divergence, you decisively took profits and left the market, and going to a cash position perfectly avoided today’s systemic broad sell-off. Especially with the aerospace sector delivering a collective realization through today’s sharp plunge, it once again confirmed the correctness of last Friday’s decision: “No gambling on weekend news—take profits and lock them in.” In a rotation-driven market, the premium from last Friday often becomes the “realization trap” on Monday. Today, the entire session was spent in full cash and on the sidelines. The purpose was very clear: overseas market sentiment has already sunk to its low point. With the Korea stock-market circuit breaker and the global technology stocks’ rout occurring, panic has not yet been fully released. A-share stocks themselves are also in a phase where risk appetite is rapidly shrinking. In a broad downtrend, blindly trying to buy the bottom can easily have you catching the fall somewhere around the halfway mark. At times like this, staying in cash and not trading is the best move—dodging the drop and protecting principal already means you’ve outperformed the vast majority of people in the market.