Chapter 859 The Importance of Defense Strategy!

"There is still almost a month left. As long as we follow the market rhythm correctly and control the retracement of our net worth, I think our performance ranking in the industry at the end of the year... is not necessarily unsatisfactory." Gao Xiang said with a smile. He said, “When the market is in the main uptrend stage, when the market conditions are good, what everyone is competing for is the ability to grasp the main line, the courage to dare to lock up heavy positions and the corresponding stock selection ability.

However, when the market conditions are not good, or when the differences between the long and short markets are relatively large.

Then what everyone is competing for is not the ability to grasp the main line, nor the courage to take heavy positions and the corresponding stock selection ability.

It's about position control and corresponding risk management.

In our industry, there are many players who perform very well when the market is rising, but often such players do not perform well when the overall market situation is poor.

When the long and short differences in the market are relatively large.

The main fund products it manages will also have a large net value drawdown.

Taking this year's market trend as an example, due to the arrival of the bull market, many asset management institutions and corresponding fund products have grasped the core main lines of 'big finance', 'big infrastructure' and 'military industry' in the early stages of the bull market. I'm sure the performance will be very good, but... Nowadays, the overall market trend and pattern have begun to change.

In the entire market, there are very few institutions that can be as sober as the main funds of the 'Yu Hang Group' at any time.

For everyone, there will still be path dependence.

This is the so-called source of profit and loss.

As long as the market continues with this long and short divergence until the end of the month.

I can be sure that in the major adjustments to the popular main lines of "big finance", "big infrastructure", "military industry" and "film and television media" in the early stage, there will be no shortage of institutions with significant retracements in performance and net worth.

Therefore, at this time, if we can try our best to defend well.

So, there is a high probability that... it is possible that we will go further in the industry performance rankings at the end of the year and achieve our previous expected goals. "

When Chen Yihe heard Gao Xiang's words, he thought about it for a moment, but he quite agreed.

Indeed, an excellent fund product and an outstanding asset management institution.

The most important thing is not the ability to achieve performance when the market conditions are good, but the ability to control risks and drawdowns when the market conditions are bad.

In the so-called financial market, the first condition is to stay alive.

When faced with the two tests of profit and survival, it is obvious that survival is more important.

After all, you can't make all the money in the market, but if you don't control risks and don't learn to carry out corresponding strategic defense when the market conditions are not good, then... although you can't make all the money, you can lose all the money.

He knows many well-known private equity institutions in the industry and even many public equity funds.

Many perform very well when the market is good, and are often able to place heavy bets on core and popular main lines, thereby capturing the market's maximum excess profits.

However, this type of asset management institutions are indeed the most likely to die in extreme market trends.

At least as far as he knew, the bear market for several consecutive years had eliminated 90% of the private equity institutions in the market in the past few years.

Although their "Yihe Capital Company" is not particularly good in terms of performance.

They are not as sensitive as many other institutions when it comes to changes in the main market trend. However, they have been able to survive in the industry for more than five years and continue to win the trust of some investor groups. They rely on their mature and steady operating style and A relatively conservative investment strategy.

They are not the best in the industry, but they have to strive to live the longest.

Because the asset management industry actually also emphasizes the principle of ‘the leftover is king’.

"Okay!" Chen Yihe sighed with a smile, "Then follow what Gao Xiang said, adjust your trading strategy in a timely manner, and continue to reduce our holdings in 'Big Finance', 'Big Infrastructure', 'Military Industry', and 'Film and Television Media'" 'The holding chips of these major main lines prevent the net value of our fund products from being hijacked by the continued decline of these major main lines.

As for our related positions in the three main areas of "big consumption", "mobile Internet" and "smartphone industry chain".

We can take a look first and then reduce our holdings appropriately to continue to reduce our holding costs.

In short, since the market avalanche effect caused by the "Yu Hang Group" large-scale reduction of positions and profit taking has occurred, and "big finance", "big infrastructure", "military industry", "film and television media"... etc. have supported the market in the early stage The overall chip structure of the core main line areas that have continued to rise and break through has been loosened.

Then, indeed, we can no longer respond with any illusions.

Like you said.

Although our organization lacks some vigor in terms of offense, it is not as responsive and decisive as other top organizations in the industry.

However, defense is our advantage.

If next, the depth and time period of market adjustment exceed the expectations of a large number of investors in the market.

So, this comes back to our areas of strength.

Of course, we should take advantage of the market correction and retracement opportunities and make corresponding strategic changes and position adjustments.

Even make predictions about the future main line market direction.

Of course, at present, it is still unknown whether the market will change in the direction we expect. At least the 3,500 point position of the Shanghai Stock Index still has a very strong supporting effect. "

Gao Xiang pondered for a moment and responded with a smile: "I think the Shanghai Index at 3,500 points is very likely to be a bull trap."

"Why do you say that?" Chen Yihe asked in surprise.

Gao Xiang thought for a while and continued: "First of all, 'big finance', 'big infrastructure', 'military industry', 'film and television media'... these groups led the market in the early stage and supported the core main lines of the market. The chip structure has been collectively It is loose, and there is still hanging on the head the expected pressure of selling by the huge main force of the 'Yu Hang System'.

So, as you can imagine...

It is absolutely impossible for these core lines to end adjustment in the short term.

Furthermore, the expectations of these main line areas and related popular stocks have been raised in advance.

At this time, without the further stimulation of these popular heavyweight stocks and their better-than-expected performance, its future expectations will be difficult to support the current stock price and valuation.

And these are the core main areas where everyone expects a surge in performance.

If the expected performance is really to be realized, according to the time point of disclosure of the annual report forecast, it will be January anyway.

In other words, in the short term, especially in the current month of December, the market does not have strong expectations that can stimulate and support a rapid rebound in the market.

In other words, this time is basically a vacuum period for news and expectations.

The central bank has just cut interest rates and required reserve ratios, and released its big move to the market. It is foreseeable that there will be no such strong benefits in the short term.

In general, market expectations are currently in a process of gradual decline.

At the same time, on the macro level, there are no strong positives to further stimulate the market.

In this way, with the two factors influencing each other, how can the index be sustained in the short term? And... even with the most optimistic attitude, the incremental funds brought by the central bank's interest rate and reserve requirement cuts will not be so fast.

There is also the decline of the money-making effect of the market.

The long capital group that originally had the idea to rush into the market to raise funds would also hesitate.

After all, the stock market is the same as the property market. Everyone prefers to buy up rather than down. This is a human weakness that cannot be overcome.

Therefore, I think the Shanghai Stock Index will be at the next 3,500 points.

Absolutely can't hold on.

Capital groups who want to grab a rebound or provide support at 3500 points will most likely fall into this bull trap.

It’s the ‘Yuhang Department’, which is the main source of funds. I don’t know what the current situation is.

If this main force of funds has indeed just begun to reduce positions and take profits based on the market trend the day before yesterday, then the next few days in the market may be quite difficult.

‘Big finance’, ‘big infrastructure’, ‘military industry’… this series of main lines.

Under the strong selling pressure of the main funds of the 'Yu Hang Series', it will definitely fall too far and fall out of a deep pit.

However, if the movement of the main funds of the "Yu Hang System" in the early stage on the market is the end of the reduction of positions and profit taking of this fund, and the large-scale reduction is the tail position.

The market's downward adjustment trend should be much gentler.

There may even be repetitions.

But no matter what...the market's adjustment tone is currently set.

With the sky-high volume of market transactions on Monday, as long as the market volume cannot exceed it and the concentrated bullish sentiment cannot be reversed, it will be impossible for the market to return to 3,800 points, let alone to hit 4,000 points. The only option is to adjust downward and wash the market downward to clean up the floating chips at this stage.

Only in this way can the floating chips on the disk at this stage be cleaned up.

Wait until the two cities shrink to the same level again.

Only then will the market usher in a new turning point, and the bull market will embark on a new journey.

Before that, I think we can safely and boldly reduce our positions and take profits, and just sit back and watch the market calm down. "

"Okay, sure!" Chen Yihe saw Gao Xiang's interpretation and analysis of the two markets becoming more and more sophisticated and logically clear, and couldn't help but admire him, "If the next market really goes as you said, then ... Even if we accurately follow the market rhythm, next year... we will be able to let you manage a fund product alone."

Gao Xiang couldn't help but smile when he heard Chen Yihe's words, and said with a smile: "Thank you, Mr. Chen."

Chen Yihe chuckled and said, "Why are you thanking me? I have always known how to make good use of others. Since you have this ability, I must build a stage suitable for you."

As the two continued in-depth discussions, they decided on subsequent trading strategies and trading plans.

At this moment, in all the major stock investment exchange forums, communities, post bars and other places on the Internet where retail investors gather for discussion, everyone is already showing a pessimistic mood about the market trend in the afternoon and the subsequent market trend. Emotions are increasingly starting to overwhelm bullish sentiment.

"Sigh, I thought the market would rebound strongly today, but I didn't expect another sharp drop."

“There was a strong rebound in the morning, but I don’t know why it completely reversed towards midday.”

"It feels like without the support of the core market trends of 'big finance', 'big infrastructure' and 'military industry', the market seems to have lost its soul and has no idea where to break through."

"It's not that the market has lost its soul due to the lack of the main lines of 'big finance', 'big infrastructure' and 'military industry', but that it lacks the support of the main capital of the 'Yuhang Department' headed by President Su. The market is I have lost my soul. Without the main force of the 'Yu Hang Group' to guide the market, I feel that other main market funds have no idea where to concentrate their trading. This is also a mistake."

"Oh, that seems to be the case. The 'Yu Hang Group' funds managed by Mr. Su will not only have a great impact on our retail investors, but also have a great impact on the main financial groups in the market!"

"That's for sure. That's Mr. Su, a figure who has created a legend of profitability in the market."

"It feels like if the market continues to go like this, it will continue to fall sharply."

"The Shanghai Stock Index is about to fall to the 15-day line, so there should be some short-term support, right?"

"The 15-day line will definitely not hold up. Alas... I shouldn't have added positions yesterday to buy low-cost stocks. Now I feel more and more passive."

"The two main lines of 'big finance' and 'big infrastructure' have been really tragic in the past three trading days."

"It's not just these three main lines. Many stocks that had surged in the early stage have gone out of the trend of continuous lower limit in these three trading days."

"Yes, there are really quite a few stocks with two consecutive boards."

"Sigh, I feel like Huake Dawn, Blue Stone Heavy Equipment, Great Wisdom, Flush, Shanghai Steel Union, Yingkou Port, Aerospace Development...these early popular stocks are all gone."

"In a word, stay away from stocks that have skyrocketed in the early stage!"

"At this time, it is safer to stay low."

"It's not safe to be at a low level. Today, Pingmei Energy has hit a record low."

"The stocks in the coal sector are just weird."

"Shenhua Coal has almost fallen to near its net assets. I feel that the 'coal' sector is the sector that should be avoided most."

“It’s not safe to buy anything at this time.”

"It's more appropriate to short positions or clear positions. Alas...it's better for the 'Yu Hang Department' headed by President Su to speak out, or to express its position on the Dragon and Tiger List."

“The ‘Yu Hang Group’ has already made a substantial reduction in positions and stopped profits on a large scale. How can we express our stance?”

"It's not necessarily true that the trading seats related to the 'Yu Hang Department' managed by Mr. Su yesterday did not appear on the dragon and tiger lists of the two cities."

"Now, everyone should be guessing about the trading strategies and motives of the 'Yuhang Department' headed by President Su, right?"

"It would be great if the 'Yuhang Department' headed by President Su could announce a round of net worth and specific position data."

"Haha... I think the 'Yuhang Department' headed by President Su will no longer publish position data in the future. After all, this can easily cause the market to follow the trend and rush for funds, which means manipulating the stock price."

"I also think that it would be enough to announce the net worth trend at most."

"In any case, whether it is announcing the net worth or position data, I think... the simplest point is, anyway, according to the 'Yu Hang System' headed by President Su, we will buy, sell, and we will sell this investment strategy Just execute it, there’s really no need to think about the rest.”

"Yes, keeping an eye on the Dragon and Tiger List should be enough."

Accompanied by a group of retail investors across the entire network, there were discussions on the market trend in the morning, as well as speculation on the motives of the ‘Yu Hang Group’, the main force in the market.

Unknowingly, the market trading time has passed 1 p.m. sharp.

After the two cities closed for an hour and a half at noon, they once again ushered in the trading session of continuous bidding. (End of chapter)