Is this bull market really coming?

The market is always so unexpectedly crazy, who would have thought that the epidemic could usher in a long-lost bull market.

With the joint rise of bank brokerage insurance real estate, Prev trading volume broke through 1.5 trillion, the Shanghai Composite Index stood firm at the 3300-point mark, and the gem once stood above the 2700-point mark.

The bull market has been going on for two weeks, the major hot spots are chasing each other, and the three major indexes are still fluctuating at high levels on the last trading day of the week. Under the mood of the bull market, more money went northward to enter the market, and the sentiment of "chasing high" in the financial market was very strong.

Why didn't I make any money?

In such a strong market, many individual investors have joined the ranks of chasing gains, but they have been busy for a long time, only to find that the earnings are not so objective, or even unable to outrun the increase in the market, which is more like a slight "meaning".

Why is that?

In fact, it is the yield in the bear market and the principal game in the bull market. In addition to picking stocks, the rise is more about the assets of the rich; in other words, a bull market will not necessarily lift you out of poverty, but it will certainly aggravate the gap between the rich and the poor. This is another manifestation of the Matthew effect in the stock market.

Will the Matthew effect only make the awesome people more "awesome"?

The so-called Matthew effect refers to the phenomenon that the strong are stronger and the weak are weaker, reflecting a social phenomenon of polarization, with the rich getting richer and the poor poorer. To put it simply, if I had $1 million in my stock account, I would have earned 90, 000 today; if I had only $10, 000 in the stock market, I would only get $900 in a bull market.

In the logic of stock selection, the Matthew effect still exists.：

From the big rise of Pinduoduo and Meituan last month and the new high of Tencent to today's bull market of brokerage investment banking stocks, we often find that those companies with greater returns in the market are often those with stronger strength. They have better funds, opportunities to start bigger businesses, and more money to make themselves stronger, thus forming a virtuous circle.

How to break the Matthew effect? Start with the thinking of the rich

If we want to "get on the bus" in the bull market, we must break the Matthew effect. We must first jump out of the thinking of ordinary people and manage our lives and wealth with the thinking of the rich.

What is the rich mind?

If there is such a thing as "poor thinking", then I think it should be a "scarcity mentality". Because of scarcity, we will be short-sighted, will only focus on the current "peep view", and will fall into the quagmire of "chasing the rise and killing the fall".

For example, some time ago, the land stall economy became a new hot spot, and the "poor mind" immediately drove us to catch up at the high point, but when the heat receded, many investors rushed to sell without making a profit or even losing money, but the land stall stock rose again in the past two days.

In contrast, Tencent and Maotai, although there are small fluctuations, but the company's stock price has been rising step by step, indicating that such companies have investment value. On the other hand, the "poor thinking" will restrict us at this time, lest we should make a mistake and fail in one step. In fact, wouldn't it be better to invest our assets in excellent bull stocks for a long time?

It can be said that "hot spots can not be caught, cattle stocks can not be held", the stock market is too difficult.

And with"thinking of the poor"Correspondingly, the "thinking of the rich" should be the "thinking of venture capital", finding the starting point and breakthrough of success, understanding long-term doctrine, concentrating one's own resources, and focusing on one thing rather than half-hearted.

So, what should we do?

Instead of running between unpredictable hot spots and bull stocks, it is better to persist in the long term, invest in the value and future development of a certain field and industry, so as to "spread the net", the probability of stepping short is naturally much smaller.

To practice long-term investment, the theme fund is often a good choice, which mainly focuses on the industries and enterprises with a certain theme. According to the trend of the future development of the economy, take one or some themes as the criteria for selecting industries and investments to meet the needs of investors.The individual needs of specific investment objects。

For example, gold funds focus on investing in world-renowned gold mining companies, biotechnology and health care invest in health, science and technology funds enlist national first-tier high-tech companies, and energy and environment funds invest in sustainable development in the future. Theme funds are like the breakthrough of "thinking of the rich". Under the control of professional fund managers, they grasp the investment opportunities of a single category and tap the possibility of potential returns.

Nowadays, with the advent of the bull market, A shares are unusually hot, and the market continues to rise. At this time, the A-share theme fund of Fortune Elephant Wealth benefits from market performance, accurately grasps investment opportunities, performs well, and helps investors take advantage of the market.

In addition, because fund managers buy the assets of many companies from multiple angles after professional analysis, another charm of thematic investment is reflected inDiversify the risk of overall stock investmentInvestors usually expect that when the market faces downside risks, theme funds tend to be relatively independent of the market and reduce the overall volatility of their portfolios, while when a bull market comes, theme funds will also rise.

Therefore, thematic investment can cover a certain area of companies that have become "rich" under the influence of the "Matthew effect", and when we invest in these packaged "rich", we are closer to the "rich" in the bull market.