Lates News

The report from CITIC Securities stated that since October, market volatility has increased, but the success rate of timing the market is not high. The reason behind this is that the underlying structure of incremental funds is changing, with steady absolute return funds continuing to enter the market, reducing the effectiveness of traditional aggressive timing strategies. The current important variables are the stability of the business environment for companies going global, as well as the progress of investment in AI infrastructure related to US-China relations and AI. Currently, not only the TMT sector, but also sectors such as non-ferrous metals, chemicals, and new energy, are experiencing an increase in direct or indirect influence from the AI narrative. 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 select varieties with a bottom-up trend in ROE as much as possible. The AI narrative only affects the slope of the market rather than the trend.