Lates News

Guosen Securities research report stated that since October, market volatility has increased but the success rate of market timing is not high. The reason behind this is the changing underlying structure of incremental funds. Conservative and absolute return-oriented funds continue to enter the market, reducing the effectiveness of traditional aggressive timing strategies. Currently, the stability of the environment in which companies go global and the progress of investment in AI infrastructure related to Sino-US relations and AI are the most important variables. Not only is the TMT sector rising, but also the non-ferrous metals, chemical, and new energy sectors are directly or indirectly influenced by the narrative of AI. Together, these sectors account for over 60% of institutional holdings. In this situation, the strategy for adjusting positions is not to deliberately avoid the AI narrative, but to choose varieties with a bottom-up trend in ROE as much as possible. The AI narrative only affects the slope of the market, not the trend.