Chapter 328: A good start amid a general rise in prices
In fact, it's not just the traders. Even Gu Junhao has been highly concentrated in recent times. Even though he has experienced a stock market crash, he can still empathize with it if he feels it again.
When you are in the midst of a stock market crash, the uncontrollability of the market will not change your mindset just because you know what will happen.
Today you think it may rise, but it may immediately give you a limit down, and even as soon as you turn around, the stock price may rise from the limit down to the limit up.
To be honest, if it weren't for the fund performance requirements and the hint to participate in the market rescue, Gu Junhao had no intention of continuing to trade A shares before 2018.
It is much easier to directly invest a sum of money in US technology stocks and then sit back and wait for the opportunity than to take advantage of a bear market like the A-share market.
It is always very difficult to trade in a bear market, just like most retail investors cannot hold on to a stock even if they know it is at the bottom.
During the National Day holiday, peripheral stock markets are still trading normally, but Gu Junhao's requirements for peripheral stock markets are not that strict. People should still take holidays when they should, and there is no need to be obsessed with making money at the moment.
As of October 2, Nvidia's stock price has reached US$24.88, and its holding profit has exceeded 30%; looking back, the price of around 19 yuan is almost its lowest point this year.
Different from the A-share market which experienced great ups and downs until it returned to the starting point, Nvidia's trend can be regarded as a condensed version of the bull market in US stocks. It has been steadily moving upward, with occasional large corrections, just like the US stock market's ten-year bull market.
Although the A-share market has experienced a correction of more than 2,000 points since it rose from 1,850 points and returned to 3,000 points, for most junk stocks, it is common to see prices falling below the initial launch level.
After this round of stock market crash, these stocks will only fall further this year and it will be difficult for them to return to their previous levels. For example, CRRC Corporation Limited fell to a low of 9 yuan after this round of stock market crash and is currently only maintaining a price around 13 yuan.
On the contrary, expectations are gradually lowered. Every rebound in the future will continue to refresh a new low, and each round of rebound will be a shipping node.
Even if CRRC's share price falls back to 5 yuan, its market value after the merger will still be incomparable to the original level. These big guys have certain value, but in the process of decline, they are actually no longer suitable for retail investors and some small and medium-sized institutions including Gu Junhao.
Being big has its advantages. The performance is relatively stable and there is no need to worry about delisting. However, stability also means that for some time, the stock price performance is very average. There will be a small rebound occasionally, but most people cannot grasp it.
Although the stock market crash caused the disappearance of a large part of the middle class and retail investors were also deeply trapped in it, it is undeniable that this round of bull market is a very large process of wealth creation, and many people will change their destiny in this bull market.
There are many small and medium-sized stocks that have increased tenfold, and most of the big stocks that require huge funds to maintain have also increased four or five times. Brokerage stocks like Xibu Securities, even if they account for an average proportion in the brokerage classification, but the price has increased from 10.5 yuan to more than 80 yuan, which is outrageous.
With such a big market trend, as long as you can withdraw in advance or react quickly after the stock market crash, it will be enough to make your profit four or five times more. If you can withdraw safely with leverage, the profit will be even greater.
In his past and present life, Gu Junhao can be considered a beneficiary of this bull market. Many of his friends also made most of the profits in this bull market. The difference is that some people withdrew in time after making money, while some people returned it to the stock market in the following years.
At present, there are also many people whose lives have changed to a certain extent because of the stock surge, just like Brother 68 who initially followed Gu Junhao to operate Wangsu Technology. Although he missed the entire bull market, he withdrew in time after making money, and had enough money for the bride price, which can be regarded as an improvement in his life.
Otherwise, according to their customs, they may not be able to get married because of the bride price, or they may end up in debt.
There are also loyal fans like Li Ze. Li Ze often leaves messages under Gu Junhao's personal social media, always with long articles. He has also posted several posts on Taoguba about following Gu Junhao's operations. It is difficult for Li Xinyu not to notice him.
Li Ze can be considered as one of those whose fate was changed by the stock market. Although with his salary income, he will definitely have a house and a car as long as there is no major accident, but with the rising housing prices, the pressure cannot be underestimated.
On the first day of the National Day holiday, the central bank and the China Banking Regulatory Commission jointly issued a notice on further improving differentiated housing credit policies. Except for cities with purchase restrictions, the down payment ratio for residents' first purchase of ordinary residential properties was reduced to 25%, from 30% before.
The decline in down payment ratio, coupled with the decline in enthusiasm for stock market investment after the stock market crash, has officially given rise to this round of large-scale increase in housing prices across the country. Since the end of 2015, housing prices in various places have begun to rise rapidly and on a large scale.
In his previous life, there were four cities where housing prices rose dramatically from the end of 2015 to the beginning of 2016. These included Shenzhen, Badu, Zhengzhou, and another city that Gu Junhao could not remember.
The housing prices in Ningbo have also increased since the beginning of this year. However, compared with other cities, the housing prices in Ningbo, especially Beicang, were relatively well controlled between 2015 and 2018.
The real surge in housing prices in Beicang began after the black swan event in 2019. As the economic environment changed, housing prices began to rise on a large scale.
In an industrial city, if housing prices skyrocket , it will actually have a very negative impact on the economic environment.
Gu Junhao currently has only one house, which is enough for his living under the current circumstances. However, after he has children and his social circle changes, the house will seem a bit shabby.
Gu Junhao is quite famous in Beicang, especially after this round of stock market crash. Not only was he not affected, but he also won a certain favor from the local management because of his active rescue actions.
It is very rare for a young wealthy generation with a net worth of billions to not indulge in a life of luxury and even own only one house. After learning of this, some people could only blame it on the fact that Gu Junhao's wealth grew too fast, causing his consumption concept to not keep up.
Gu Junhao has no special pursuit for houses and cars. It doesn't matter whether to invest or not to Gu Junhao. He is not very interested in products with insufficient liquidity, such as houses, which can make stable profits in the stock market.
However, one house is indeed a bit too little, so during the National Day holiday, Gu Junhao had no choice but to prepare to purchase some more fixed assets like most people who made profits in the stock market.
Once you have money, you have to spend it a little. While purchasing assets for yourself, you are also promoting consumption.
Throughout the National Day holiday, the external markets performed very well. Affected by the postponement of the Federal Reserve's interest rate hike expectations, the Dow Jones Industrial Average has risen by a total of 5.3% since hitting a low on September 29, the Nasdaq has rebounded by 5.8%, and the S&P 500 has rebounded by 5.8%.
The five consecutive trading days of gains also created the longest continuous rising cycle of US stocks this year. Nvidia's weekly lines rose for four consecutive days, and its share price closed at US$26.07. In addition, the European and Nikkei indexes rose by 7% and 8.2% respectively.
In terms of commodities, there was a general increase during the holiday; at the same time, domestic economic data exceeded expectations. After falling for two consecutive months, the PMI began to rise slightly. In September, the PMI of large enterprises has returned to above the critical point of 50%.
Foreign financial markets were all in the green and domestic economic data also showed signs of bottoming out and rebounding. Under a series of favorable influences, the Shanghai and Shenzhen stock markets both opened higher on October 8, the first day of official trading after the holiday.
The Shanghai Composite Index opened at 3156.07 points, which was more than 100 points higher than the 3052.78 points at the end of September. The index remained in a high range of above 2.5% and below 4% throughout the day.
Individual stocks performed well. Influenced by the positive news about real estate, Vanke A opened higher at 13.25 yuan in the morning, up 4%. Although the stock price rebounded throughout the day due to fluctuations, it still closed at 13.07 yuan. The stock price returned to above 13 yuan again, up 2.67% on the day.
Maotai Liquor also jumped upward by more than 4% in the morning, and the intraday increase was once close to 6%. The stock price hit the 200 yuan level and finally ended the first trading day after the holiday with a 3.79% increase.
Tonghuashun's stock price opened high and continued to rise throughout the day. At 10:15, a buy order of more than 50 million yuan pushed the price to 43.36 yuan, and the stock price was capped at the upper limit. Subsequently, the stock price remained at the upper limit price throughout the day.
Longji shares rose by more than 4%, with the share price at 9.58 yuan. Gu Junhao's holding of 300,000 shares realized profits again today. Tianqi Liye, which is part of Junshi's proprietary trading, hit the daily limit today like Tonghuashun, and the share price has reached 69.78 yuan.
Junshi's proprietary trading position is only 0.72 yuan away from doubling. As for Home Depot, it is still suspended for self-inspection today.
The short-term monster stocks have been suspended, and the current suspension is relatively harmonious. If it weren't for the nine consecutive boards and the sky-high and floor-low as well as the floor-sky trend on the 24th, which attracted great attention, Home Li shares would probably not have been suspended.
Just like the first round, there were three or four daily limit increases followed by several trading days of adjustments. Although the stock price quickly rose more than five times at that time, it was never suspended.
The real crackdown on short-term speculation and large-scale suspension of trading did not occur until after 641 took office. The market environment during that period was extremely poor. It was also during his tenure that the stock market gradually turned bearish until it hit bottom in 2018.
At the same time, a large number of small and medium-sized bank stocks were issued during his tenure, especially in his hometown of Jiangsu Province. The listing of a large number of new stocks also began during his tenure.
