4200 shares fell, the broader market fell 2.3%, what happened?

time:2022-12-02 06:15:51 source:clevelanddrifters.com author:Aviation stock
4200 shares fell, the broader market fell 2.3%, what happened?

The biggest news yesterday was the "Opinions on Further Optimizing the Business Environment and Reducing the Institutional Transaction Costs of Market Entities", in which it was proposed to encourage financial institutions such as securities firms and funds to reduce fees. Therefore, many people believe that this week's sharp drop in brokerage stocks has something to do with this news. In fact, the sharp drop in brokerage stocks has little to do with this news. In essence, the market's willingness to do more is weak due to the poor international economic environment. In the case of chaotic market news, investors' pessimism is easily contagious, resulting in a sharp drop in the market. The trampling caused by investors' psychological reasons was the dominant factor in yesterday's slump. I have been bearish on banks and brokerages since last year. In many of my articles, I have talked about the guideline of the state in recent years that finance should serve the entity. What is an entity service? That is, financial companies such as banks and brokerages should provide convenience and even discounts for corporate financing, listing and other financial activities. How to offer discounts? It's very simple, just make less money for yourself. Take some of the money that should belong to you to support real enterprises. This is to serve the real economy. To put it bluntly, the state believes that financial companies are making too much money and should spend some money to support the manufacturing industry. This is obviously not good news for financial companies. Therefore, in my holdings in the past two years, I did not have a share of the banking and securities companies, and I have the most layout in the manufacturing industry, and even held positions in the specialization and new sectors. I think the current market downturn is normal. The day before yesterday, the new energy sector in the market fell sharply. Yesterday, securities companies and coal fell sharply, and the market was in a state of falling. I've been thinking about a question for years - why does the stock market fall so sharply in a bear market and rise so sharply in a bull market? These days, I finally figured it out. This is a normal human response in an open market. An open market is a market where various news and things happen at any time, and no one can accurately estimate what will happen in the present and the future. This kind of market makes it difficult to judge what will happen in the future, and the extent of things. This makes the future full of uncertainty. In the face of uncertainty, human nature is generally either too fearful or too excited. That is, in a bear market environment, people are not sure how much and how long the market will fall, and what bad news will there be. Under all kinds of uncertainties, people will infinitely enlarge their suspicions and fears about the market. Market confidence will easily collapse, there will be many sellers and few takers, forming a downward cycle. It's like taking a bus when we are young, people who are about to get on the bus can't avoid crowding at the bus gate. Because people can't be sure if they can get on the bus. If the driver and flight attendant can ensure that every passenger can get on the bus, the congestion will be lifted immediately. Our stock market lacks such a guarantee-guarantee that it will not fall again, that it will not be negative, that it will not rise, and that there will be no greater good. Therefore, in a bull market, people will crowd and rush forward, even if the market has skyrocketed several times. Because no one knows whether the stock market will continue to rise, and no one knows whether there will be greater positives in the market outlook. In a bear market people crowd and sell, even if the stock market is down 50%! Because no one knows how much the market outlook will fall? No one knows how bad the market outlook is waiting for us. So the stock market has been repeating this bull market madness and bear market fear for hundreds of years, and it has never changed. Because the stock market is actually a game of money, conflicts of interest are the most likely to cause people's emotions to get out of control, especially when the fuse that triggers a sharp rise and fall in the stock market occurs. People's emotions are more easily out of control. Remember, in the past, A-shares had a "melting system". After the launch, not only did the risk not control, but it intensified the risk. This is because when people lack investment confidence in the market, the melting mechanism is like the door of the bus, and people are worried that they will be blocked at the door of the bus. When people see the stock market falling, they rush out the door, causing the stock market to fall even more violently. In the face of today's market decline, I know very well that this is just another crowded and trampled market. A little bit of trouble in the stock market can cause a crash. This is the masterpiece of a rabble in the stock market. I used to be one of them, and I don't mean to mock them here. How can smart investors make big money without them? I know that sooner or later, these people will flock to the market because the market is getting better, they will push the stock market very high because of greed, and when that day comes, my assets will skyrocket and double, and then I will Dump most of these doublings to these high-end snappers and go enjoy my wonderful holiday trip.

(Responsible editor:Hot industry)

Related content