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Value deviation and market change under the capital-driven bull market

Value deviation and market change under the capital-driven bull marketIn the current capital market, this seemingly turbulent bull market actually presents the characteristics of "fake cattle" driven by funds. Under the crazy pursuit of funds, the prices of many theme concept stocks soared like rockets and were fired to a staggering high. In essence, this hype is tantamount to a zero-sum game, or a dangerous pass the parcel. When funds keep pouring in, the stock price keeps rising, just like a moon in the water and a flower in the mirror. On the surface, it is gorgeous, but this inflated prosperity lacks solid internal value support and is doomed to be unsustainable. Once the capital chain breaks or the market sentiment turns, this carnival banquet will come to an abrupt end, leaving only a chicken feather. Those investors who take over in high positions often fall into a deep trap. They may face great pressure to cut their meat, and may even lose everything because of investment failure and fall into long-term pain and regret.

In sharp contrast, some stocks with real intrinsic value are left out in the cold. Their share prices are either hovering at a low level or seriously undervalued, and they have been ignored by the market for a long time. These value stocks are like pearls left in the corner. Although they are temporarily dusty, their value has not disappeared. This two-day market structure is unsustainable. The power of the market will eventually promote the return of value, and the critical point of mutual transformation between the two may come at any time. When the value-based stocks start to rise, it will also be the day when the bubble of the over-hyped theme concept stocks will be completely burst. This is the inevitable embodiment of the market law, which warns that investors should treat the short-term fluctuation and long-term value of the market rationally, avoid blindly following the trend of speculation, and stick to the concept of value investment is the cornerstone of steady progress in the capital market.