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Love is a beam of light, and the green is making you panic~Can the A-share market’s recent string of corrections~still let us enjoy the National Day holiday?
But I think this is just a normal bubble squeeze-out. Chip and AI themes pushed stock prices too high in the first half of the year, but the market can’t celebrate New Year every day. In the second half, as the Shanghai Composite retreated to around 3,880 points in late September, funds are now retreating across the board, trading volume has also shrunk, and the market is undergoing a sharp correction
I expect this volatile adjustment to continue for some time, because trading volume is currently shrinking significantly, with funds shifting from blindly speculating on concepts to focusing on solid financial-report results
I feel it will be difficult for the market to return to the phase when simply buying tech stocks with your eyes closed could bring huge gains. Next, it will enter a rigorous earnings-validation period, and pseudo-tech companies relying purely on storytelling and speculation will continue to be eliminated
True hard-tech companies with core technologies and deliverable results, along with quality sectors benefiting from policy support and a recovery in domestic demand, will be the main directions for funds to regroup around. Short-term pain is for the sake of a long-term bull market; keeping a steady mindset is the most important thing right now
DYOR