East Fortune Securities Chen Guo: Market in the Second Stage of Bull Market, Focus on Artificial Intelligence and Three Major Themes

Recently, the Shanghai Composite Index has continued to fluctuate around 4000 points. Chen Guo, the deputy director and chief strategist of the Oriental Wealth Securities Research Institute, said during a meeting at the Times, "When the Shanghai Composite Index surpasses the integer level of 4000 points during a bull market, investors may feel a bit of 'lingering fear'. However, compared to 2007 and 2015, the current A-share market valuation is more resilient, and with loose global liquidity, market independent logic is strengthened." Investors do not need to give too much definition to the 4000 point level, but should focus on the reasonableness of valuation and the matching degree of profit growth. Chen Guo believes that a bull market is divided into three stages: the first stage is the improvement of liquidity, the second stage is the increase in risk appetite, and the third stage is the improvement of fundamentals. Currently, the market is in the second stage of the bull market, driven by the increase in risk appetite. If fundamental improvements spread in the future, there may be an opportunity for the third stage. In terms of investment direction, Chen Guo recommends focusing on three major themes: artificial intelligence, biotechnology, and commodities.