Over the next decade, a-shares are unleashing huge opportunities

2022-06-14 0 By

Today I read an article, which explains why a person needs three incomes.They are wage income, second occupation income and investment income.I can relate to the third income he analyzed, which is investment income.Many people are afraid to open up a third income, because they believe that investing is a loss and hard to make money, which is why they resist it.If you have any knowledge of investing, you can probably understand that investing is a very long process, and it is a process of sweet after bitter.If I can sum up the good process of investing in one word, I think compound interest can be related to long-term investing.The longer we stay in the investment path, the stronger the compounding effect becomes.Personally, I think equity is a pretty safe bet, even if you buy at the wrong high and hold it for more than 20 years, you can barely lose money.What’s more, if you master a little investment knowledge and investment philosophy, the probability of profit will be very high.Since I started to contact capital market investment in 2018, I have hardly made any selling operation in my big account. I have been holding it until now, and I will add some funds in the middle of the process, which is also profitable at present.If you have some understanding of the investment cycle and know how to add to a position when it is relatively undervalued, even after investing, the stock market is still depressed in the short term.But, in the long run, it’s bound to mean reversion.For example, the U.S. stock market barely rose in the decade from 2000 to 2012, but then came off a huge 10-year bull market.Reversion to the mean is a rule in the stock market. It will happen, but we can’t tell exactly when it will happen.Today, China’s A-share market has not risen much for almost 10 years. Although the market in the past two years was good, if you look at the point level of the Shanghai Composite Index, it is still up and down where it was 10 years ago, and there is no strong trend.So will China’s stock market be as bullish as the U.S. market in the next 10 years?The rhythm of history may be different, but the pattern is the same.A shares relative to the United States, is not so mature.A shares are mainly retail areas, and retail investors are almost all short term, make quick money mentality, lack of investment patience, market volatility, retail investors like to follow the trend of operation, do not want to think independently, not to judge the real value of the company.As a result, it is difficult for individual investors to make money in the investment market, and most people even feel that the Chinese stock market is not good at all.However, in the past two years, great changes have taken place in the capital market. For example, last year we launched the Science and Technology Innovation Board, and the Growth Enterprise Board also carried out the reform of the registration system, including the construction of a capital market system, which was launched irregularly.In fact, this is to send a signal that in the future, we will vigorously develop the capital market, equity financing, and scientific and technological innovation.For the past decade, the notion of making money from investing has taken precedence over flipping and building houses.But what really makes a country’s economy grow is not how many houses we build, but how many houses our people buy. It is the constant innovation of science and technology that leads the world forward.Buy a house to build a house to fry a house to say to be the family affair of door only, it cannot be in line with international economy, be not very big to international influence, use a word to describe, be “inside roll economy”.Only by developing scientific and technological innovation can we go abroad, benefit the world and integrate with the world.Companies like Apple, BYD, Tesla, Microsoft, Huawei, their value is blocked by the world.Only scientific and technological innovation can drive a country to go on in the long run. Only when a country has high technology can it have the right to speak.Therefore, the development of technological innovation must rely on venture capital. Only when the top venture capital sees the premium of technology, they will be willing to support those technology enterprises with capital.This is why many investment big VS are very optimistic about the capital market. The development pace of the capital market is very cutting-edge. Follow it and adhere to it for a long time.The investment market is actually a place where wealth is redistributed. The people with higher cognition reap the ignorant and the people with more experience reap the people with less experience.Therefore, learning some investment concepts, investment knowledge and investment skills is a necessary course for adults. Without this skill, it is particularly difficult to participate in the secondary distribution of wealth.Even if in the next 10 years, our A-shares go out of the Us-style long bull, you may still not make money without knowledge support.So, investment on this road, in addition to constantly improve their understanding, there is really no other way.