Whether it is a crisis, a financial tsunami, a trade war, or the new coronavirus now, it seems that “draining water” is an eternal panacea that can cure all diseases.
The current situation is a sharp rebound in the stock market VS the rapid downturn in the real economy, and the continuous rise in the market has made many investors confused.
You may say that the stock market reflects the real economy half a year in advance, so even if the real economy is still falling rapidly, but governments of various countries continue to “release water” and introduce measures to stimulate the economy, so the rapid rebound in the stock market now reflects the overall improvement of the real economy after half a year. No contradiction, is it Ye Fei?
Or investors expect that after the crazy printing of silver paper, the funds will be flooded, and holding cash will mean that the purchasing power will decline, so it is necessary to start buying assets. Whether it is to take advantage of stocks, properties, or gold that can traditionally fight inflation, no matter what, just don’t hold cash that is expected to decline in purchasing power … This inference feels reasonable.
Having been based in the stock market for more than 20 years, I have never seen a major stock disaster that happened once in 10 years and fell within less than a month, but as Buffett said, he lived at 89 for the first time and encountered US stocks 4 times in two weeks It is the first time for everything to be blown. Perhaps the stock market crash of this time is past tense. In response to the current market conditions, I certainly will not ALL-IN Boda City has bottomed out, but it will not rebound more and reduce positions. I will try my best to maintain the current position. I may carry out some horse-changing operations, which will be more recent. Lagging stocks are chasing behind.
Faced with this unprecedented epidemic situation and an infinite number of people, you can only touch the stones to cross the river, see the walking steps, and adapt accordingly.