The market has never lacked changes, but the sector rotation, style switching, and market turbulence experienced by the market this year have become more frequent and sharp than ever before. What is reflected behind this is that the investment logic based on the dividend of the times is undergoing major changes.
As a policy keyword in the field of social and people's livelihood in recent years, common prosperity points to China's important strategic direction in the next few decades, and it has also become a calibrator for various policies and future investment directions. Common prosperity should create an environment of fair competition so that more people can obtain education and security. Through hard work and legal business, the proportion of middle-income groups can be expanded, the incomes of low-income groups can be increased, high-income groups should be reasonably adjusted, and illegal incomes should be eliminated. Olive society.
It is precisely under this logic that domestic regulatory authorities have intensively introduced a number of measures for industries such as games, e-cigarettes, education and training, the Internet, and entertainment. Among them, the biggest short-term impact is the huge changes in the education and training industry caused by the implementation of the "double reduction" policy and the market serial shocks from level one to level two, from A shares, Hong Kong stocks to US stocks, but with a larger coverage and longer duration. The more far-reaching impact is the combined regulatory storm sweeping platform-based Internet companies, involving a wide range of topics such as platform monopoly, unfair competition, data abuse, data security, financial risks, and disorderly expansion of capital.
Times have changed. The goal of common prosperity superimposed on the requirements for security and autonomy and control under the long-term game between China and the United States has made China's economic governance structure shift from efficiency to fairness, from speed to security, and from getting rich first to getting rich together.
The market is also undergoing a reshuffle, and risks always accompany opportunities. Each era has its own themes and trends. Trend changes will be transmitted to the supply and demand pattern, and then affect the prosperity. Investors who earn long-term excess returns are inseparable from long-term growth judgments based on the dividends of the times. Growth and value are not naturally separated. The growth-oriented value investors represented by Buffett and Munger have already evolved in practice to adapt to the times. They believe that growth itself is part of value.
There are always people getting on and off the car when the wind vent rises and falls. The dismal performance of companies facing regulatory pressures in the capital market has caused some overseas investors who have bought heavily to have doubts and wait-and-see about the prospects of investing in Chinese companies, but there are also many investors such as Dalio and Mapper. I firmly believe that this will benefit China's business ecology and the development of small and medium-sized enterprises in the long-term, and firmly believe in China's position. In fact, anti-monopoly and narrowing the gap between the rich and the poor are not just issues that China has to face, but also challenges facing the world. As John Donne said, "No one is an island."
Where the outlet is, the capital is. As the goal of common prosperity is proposed, both retail investors and asset management institutions should stand on a higher dimension and think about how to allocate core assets leading to the future. In the prospects of major institutions, new consumption, new energy, new materials, semiconductors, high-end manufacturing, and biomedicine are all frequently mentioned keywords. The selection of these keywords is actually not difficult to obtain from relevant policy information. Looking forward to the future development of China's industry, small and medium-sized enterprises with specialization and innovation are the focus. They will provide new opportunities and new samples beyond imagination. The newly established Beijing Stock Exchange will also bring new possibilities to investors.
Of course, not only value, but also bubbles follow the trend. Above the tuyere, fish and dragons are mixed. Investors need to focus on the big picture and start small to avoid the risks hidden in the consensus and discover truly outstanding companies.
