Bull Market: Stay or Leave?

For most stock investors, the joy of returning from the holiday was matched by the helplessness of the past few days. Looking at the recent trend of A-shares, one cannot help but ask: Is the bull market still here? Should I leave or stay?

The stock market has undergone a significant adjustment, causing investors to be in a state of panic.

The fluctuation in the stock market is like the difference between a karaoke bar (KTV) and an intensive care unit (ICU).

Before the holiday, under the impetus of policy benefits, the market achieved a "four consecutive jumps," like a "mad bull" rushing in. This National Day holiday has also become the "least desired rest" holiday.

While leaving many investors stunned, they rushed to enter the market.

Especially on October 8th, the three major A-share indices surged with increased trading volume. By the end of the day, the Shanghai Composite Index rose by 4.59%, reaching a high of 3,674.40 points. The transaction volume of the three markets in Shanghai, Shenzhen, and Beijing reached 3,483.5 billion yuan, an increase of 872.1 billion yuan from the previous day, with more than 5,000 stocks rising.

However, it seems that this "mad bull" has become even madder. In the few days after October 8th, the market can be described as "unstable," with the highest fluctuation within the market reaching 15.28%.

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Today, the three major A-share indices closed down collectively. By the end of the day, the Shanghai Composite Index reported at 3,201.29 points, with a decline of 2.53% within the market, and more than 4,400 stocks fell across the market.

Faced with this "one slap and one sweet date" situation, investors are in a state of panic: Is the bull market still here? Should I leave or stay?

Has the bull market already ended? The reasons for this are as follows:For this question, let's start with the answer: The bull market is definitely still here.

Firstly, this trend has been set by the highest level of leadership, which can be described as fundamentally sound and legitimate.

It is quite evident that the central bank has initiated a new round of large-scale monetary easing. However, the role of the real estate market as a "reservoir" no longer exists, as the real estate market itself is in a state of being "half-dead and not alive."

Thus, the stock market is the only option left.

The current issue lies in the struggle between whether to have a slow and long bull market or a frenzied one.

Moreover, the current market trend is primarily determined by retail investors.

Last week, the A-share market was in a very favorable position, with a large influx of retail investors, which can be considered as "ripe for the picking," and all the "reapers" are waiting to strike.

Due to this, many retail investors were caught in the market in the past week, leading to a rapid decline in trading volume. This gives the appearance of a "bull market no longer exists" illusion.

However, this situation may continue for a while, and the market will remain in a state of harvesting.

Additionally, there is still a continuous stream of good news within the market.Internationally, funds from outside the market continue to flow in, and the performance of Chinese assets overseas remains strong. Domestically, the enthusiasm for opening accounts persists, and the daily trading volume of A-shares remains stable.

Decisions to Stay or Leave Are Difficult for Everyone

Since the bull market has not reached its end, "staying" is definitely a better choice.

However, for the current stock market, making money may not be easy. So what should investors do?

Faced with the uncertain situation of the current bull market, investors who choose to stay should focus most on the changes in monetary policy and macroeconomic data. This is because monetary policy and macroeconomic data are one of the important factors affecting the trend of the stock market.

When monetary policy remains loose, the stock market is more likely to rise; while poor economic data requires a cautious approach to market trends.

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