Rebirth of the Capital Legend

Chapter 237 The fund’s position building plan!
"Old Qu, prepare to enter the market!"

Su Yi looked at the Shanghai Composite Index, which had dropped to around 2700 points on the big screen in the trading room, and instructed Qu Zecai, the trading manager of the "Hua Yi Expedition No. 1" fund product.

"Boss Su, the entire market doesn't seem to have stopped falling." Qu Zecai said with some doubt, "The Shanghai Composite Index may not be able to hold up at 2700 points, and the volume of the entire market continues to be sluggish, and liquidity is relatively limited. It depends on the situation... I don't think there will be much improvement before the Spring Festival. Isn't it a bit too hasty for us to enter the market and build positions at this time? Why not wait a little longer?"

Before the market 'stock market crash 3.0' occurs.

He didn't quite understand Su Yi's investment strategy of requiring the entire trading team to hold empty positions and wait.

But now, after more than half a month of continuous market plunge, he has fully understood Su Yi's decision at the time, and feels that continuing to wait patiently does not seem to be a better strategy.

"The market volume has now shrunk to around 3000 billion." Su Yi took over and said, "The continued plunge and shrinking volume have shown that the market's momentum of selling has been almost exhausted. When we invest, sometimes we don't need to be so precise. When many high-quality stocks in the market have generally fallen to extremely undervalued positions, buying at a price 20% higher or 20% lower will not make much difference in terms of expected future returns."

Qu Zecai thought about it and felt that what Su Yi said did make some sense, so he couldn't help but reply: "Then which main line direction and target stocks should we build positions on?"

"Old Qu, what do you think?" Su Yi asked with a smile.

It has been almost a month since the company's fund product issuance was completed and entered the closed operation period.

During this month.

Although the company's entire trading team did not have any specific trading tasks, there were many discussions on the main lines and targets for building positions during the "Stock Market Crash 3.0".

Although Su Yi is clear about the main line and core targets of the "Hua Yi Expedition No. 1" fund product.

I have already made plans.

But he still wanted to hear Qu Zecai's opinion.

Qu Zecai noticed Su Yi's gaze, coughed lightly, and said: "Based on our team's analysis and my personal opinions, I think the market's current fundamental reversal expectations are strong, and there is a core theme of performance explosion expectations in the future. In terms of certainty, it is still the core theme of 'new energy industry chain', especially some upstream resource stocks in the 'lithium battery' sector, which have the best cost-effectiveness.

Of course, now that the property market is recovering across the board.

The real estate sector is also worthy of attention, especially the leading stocks in the real estate industry, which will definitely benefit from the industry's recovery and scale expansion, thus experiencing an explosion in performance. "

"What else?" Su Yi continued to ask with a smile.

Qu Zecai thought for a moment and continued, "The main theme of 'big consumption' is also quite good. According to the various consumption data released recently, domestic consumption is still very strong. Moreover, the consumption sector has always been the cradle of bull stocks. If we want to make long-term investments, this main sector should be unavoidable."

"Yeah." Su Yi nodded slightly and asked, "What's the specific bid?"

Qu Zecai handed some research reports on the table to Su Yi and said, "If we determine that the main investment directions of our fund products are in the fields of 'new energy', 'real estate', and 'consumption', then I think these core leading stocks, after experiencing the 'stock market crash 3.0' and generally falling to the valuation trough, are now very worthy of attention and investment."

Su Yi took some stock research reports from him and looked through them.

He found that some of the stock targets for building a position that the other party had researched overlapped a lot with the ones he was planning to build a position in. For a moment, he couldn't help but admire Qu Zecai in his heart.

He can perfectly grasp every market trend opportunity and plan out stocks that are suitable for fund products to build positions at this stage.

That's because he has a memory of the future market and knows which stocks will perform well in the future.

But Qu Zecai doesn't have this ability.

In the absence of a 'rearview mirror', he was able to use the current market trends, industry and individual stock research reports, and in the midst of a pessimistic mood, come up with a list of individual stocks that were most in line with what he had in mind. This shows that Qu Zecai's own market research capabilities are still quite strong.

Of course, in order to poach the other party from a well-known domestic asset management institution.

Su Yi also gave the other party a very high salary.

"There is no big problem in selecting the target," Su Yi said, "but the priority of building positions in individual stocks needs to be divided into different levels."

"What Mr. Su means is..." Qu Zecai didn't quite understand Su Yi's intention.

Su Yi smiled and said: "The trading seat used by our organization is the trading seat of the 'Financial Street Fuxing Road' sales department that I used to trade. Now in the market, many funds are watching the movements of this seat. We need this seat to help us gather the mood for trading, but at the same time, the sharp increase in follow-up trading will also make us passive in obtaining chips.

Therefore, the stocks with the best current profit and loss ratio are the most valuable.

We need to buy as much as possible and get as many low-priced chips as possible before our seats are exposed.

In other words...the first batch of target stocks for our fund should be the stocks that we all think have the best profit and loss ratio and the greatest potential for future growth.

As for the others, you can wait until these stocks have built up a suitable position and then slowly follow up.”

"I understand." Qu Zecai nodded slightly, thought for a moment, and continued to ask Su Yi, "Then according to what you said, Mr. Su...which stocks should we start with?"

On the specific target of building a position in individual stocks, he still wanted to hear more of Su Yi's opinions.

After all, Su Yi is the fund manager of the fund product "Hua Yi Expedition No. 1", and he also has the final say on changes in the entire investment strategy.

Su Yi said: "As you said just now, in the main line of the 'new energy industry chain', the stocks with the greatest explosive potential and the most obvious market demand expansion are still the upstream resource stocks in the 'lithium battery' sector. Among the upstream resource stocks, the two products with the most obvious price increase expectations and the largest demand expansion are 'lithium carbonate' and 'lithium hexafluorophosphate'.

Starting from these two core products, we can deduce the logic...

It is only natural to prioritize building positions in the stocks of 'Tianqi Lithium', 'Ganfeng Lithium', 'Dofluoro' and 'Tianci Materials'.

As for the main line of 'real estate'.

Due to the business model of "real estate development", the improvement in fundamentals and performance explosion of related leading companies will lag behind the reaction of real estate market and housing prices.

In other words, it is very likely in the short to medium term.

House prices have skyrocketed, but the performance of leading real estate companies has not changed much.

Therefore, relatively speaking, it would be more appropriate to invest in stocks in the industry chain related to the main field of "real estate" at this time, especially stocks that can immediately respond to changes in demand and quickly affect changes in performance. "

"Real estate-related industry chain." Qu Zecai thought for a moment and said, "Mr. Su, are you talking about building materials, cement, steel, home furnishings, white goods, etc.?"

Su Yi nodded slightly and said, "Yes, in fact, in terms of the entire 'real estate recovery' logic, I am more optimistic about the leading stocks in the industry chain segments that can immediately reflect changes in industry fundamentals and have simpler business models. Stocks such as 'Conch Cement' and 'Oriental Yuhong' are both good and can be prioritized for building positions."

"What about the 'mass consumption' sector?" Qu Zecai asked again.

Su Yi responded: "In the field of 'big consumption', the sector with the most expected differences, the most obvious recovery, and the most severe valuation suppression should be the 'white wine' sector, right?"

Qu Zecai nodded slightly and said, "Due to the 'plasticizer' incident two years ago, the liquor industry has been greatly affected. Currently, for the entire industry, not only are the expectations of institutions very low, but retail investors in the market also don't like to pay much attention to this sector. This has led to the valuation of the entire sector being compressed very low. The industry's leading companies, such as 'Qianzhou Moutai', 'Wuliangye', 'Luzhou Laojiao', 'Jincheng Fenjiu' and other stocks, generally have a PE valuation of around 10 times. Even though their corporate performance in the last two quarters has been very good, it has not been able to enhance market investors' confidence in the continued growth of the liquor industry in the future, nor to reshape the industry's valuation." "This is where the expectation gap lies." Su Yi said, "It is because of the market's bias that the current liquor sector has good investment opportunities. Once the performance of industry-leading companies continues to grow and the market's bias is corrected, these leading stocks will easily usher in the result of the Davis double-click."

Qu Zecai smiled and said, "I think so too."

He himself likes to drink liquor, so he has done quite thorough research on this industry and this sector.

Before that, at the last institution where he worked.

He also proposed to the company's asset management business leader the investment advice of increasing holdings of leading stocks in the liquor sector, but the leader did not agree with the investment logic he proposed.

Of course, it’s not just the leaders who don’t agree.

According to his observation, it has been two or three years since the "plasticizer" incident broke out.

The market has always looked at the liquor sector with tinted glasses, and the valuation level of the entire liquor sector has never been successfully corrected.

So, when he felt that Su Yi's thoughts coincided with his.

He was really happy in his heart.

"Then the investment strategy in the main line of 'big consumption' should start with the liquor sector." Su Yi said with a smile, "Such a cheap 'Qianzhou Moutai' stock is really a rare investment opportunity in the history of the market."

His previous trading pattern was based mainly on short-term sentiment.

Therefore, he didn't pay much attention to the core blue-chip stocks in the market.

but now……

The company's fund issuance was successful, with 200 billion in funds.

With such a large amount of funds, he can no longer invest in the secondary market based on the previous short-term sentiment speculation method.

And it is impossible to operate according to the previous trading model.

Then it is inevitable to turn to blue-chip stocks with greater liquidity and more stable trends, and focus on medium- and long-term investment ideas.

Regarding the so-called speculation and investment disputes, the difference between trend investment and value investment...

Su Yi didn't have much resistance in his heart.

For him, as long as he can make money in the market, no matter which investment school or investment strategy, it can be used.

In his opinion, there is no absolutely correct way to invest.

Only in the ever-changing market can you find the most suitable path.

What he needs to do is to choose a path suitable for the rapid growth of the net value of the "Huayi Expedition No. 1" fund product at the right time.

He doesn't mind being classified as a speculator or investor by his peers in the market.

"Compared with other stocks in the market, the 'Qianzhou Moutai' check is indeed the most worthwhile stock to invest in in terms of certainty and valuation..." Qu Zecai said.

"In that case, let's hurry up and build a position." Su Yi said, "The market pricing mechanism may be wrong for a while, but it won't be wrong forever. The value of the 'Qianzhou Moutai' stock will be reflected quickly after the market investors' cognition and expectations are gradually corrected. By then... the stock price will most likely not be so cheap."

The stock of 'Qianzhou Moutai' at this time.

After experiencing a bull market and three stock market crashes, the stock price is still at the low point of a year ago, with a stock price of less than 200 yuan and a market value of less than 2000 billion yuan.

This compares with the stock price of over a thousand yuan in the future market and the market value of 'Qianzhou Moutai' of 2 trillion yuan.

Not too cheap at all.

Qu Zecai nodded, and then, following Su Yi's instructions, sent the list of priority stock targets that Su Yi had just proposed to all the traders in the trading room.

And require traders to complete the corresponding position building tasks according to the target list.

After receiving the trading tasks issued by Qu Zecai, the traders quickly tapped on the keyboard and used their own accounts to buy the corresponding stock chips according to the instructions.

And the entire 'Hua Yi Expedition No. 1' fund product trading department continues to buy.

The overall market is still continuing to fall.

Among everyone's goals, after the Shanghai Composite Index reached 2700 points, it received almost no decent support and directly broke through this integer mark.

The Shenzhen Index and the ChiNext Index fell during the day after the Shanghai Composite Index broke through the support level of 2700 points.

It has once again plummeted to the 5% mark.

All I can say is that it’s a good thing that the circuit breaker mechanism has been forced to be suspended now, otherwise, with the current market trend, the circuit breaker would be triggered again in an instant.

Amid the index's plunge, individual stocks naturally performed even worse.

All major core themes, leading stocks in popular sectors, and "small and medium-sized start-up" growth stocks have suffered heavy losses, with an increasing number of stocks hitting the daily limit.

It seems that after a continuous decline in volume.

When everyone thought that the market could no longer generate volume.

Under the extreme panic sentiment and the continuous selling and stop-loss orders, the market once again showed a trend of large-scale and rapid sell-off.

"Don't hesitate. As long as there are sell orders on the market, be bold and buy in large orders."

Su Yi saw that when the market was falling sharply, the traders seemed to be too concerned about the purchase cost in the process of buying chips. At the same time, the speed of building positions was also slow, so he couldn't help but remind them.

Then, without waiting for anyone to respond.

He sat down next to the main computer in the trading room and opened the main fund account. Faced with the plummeting share price of 'Qianzhou Moutai' which had fallen to 187 yuan and whose intraday decline had rapidly increased to 4%, he placed continuous large orders of 1000 lots to sweep the market upwards and swiftly took in the selling orders.

(End of this chapter)