CICC: The overall valuation level of A shares is still within a reasonable range. It is not recommended to chase after gains in the short term.

The Zhongjin Wealth WeChat account stated that when compared to major global stock markets, the current dynamic P/E ratio, market value, and other indicators of A-shares are still within a reasonable range. Some blue-chip sectors have undergone valuation adjustments, but not yet reached obvious overvaluation. Compared to the ten-year treasury bond yield, the 2.6% dividend yield of the Shanghai and Shenzhen 300 Index indicates that equity assets still have strong appeal. However, the recent rapid increase in trading volume will inevitably bring about increased short-term volatility, with limited long-term impact. In the short term, Zhongjin advises against buying on the rise, which not only increases costs but also easily gets one stuck at the "fish tail spike". Guessing short-term market trends and timing the market's peaks and troughs is not useless, but only if we can get it right consistently. Unfortunately, it is unlikely that anyone can do so. How can ordinary people respond to an upward cycle? First, consider passively managed index funds, especially index-enhanced strategies, which are considered the main track of domestic quantitative strategies in terms of strategy capacity and excess returns. These investment strategies are relatively clear and easy to understand for ordinary investors, making participation more accessible. Additionally, despite a strong market rally, do not forget the importance of being both offensive and defensive. Ordinary investors can consider using a "dumbbell strategy", using a defensive dividend strategy paired with a small portion of technology, innovative pharmaceuticals, new consumer themes, and other thematic funds as an offensive component, achieving a flexible and balanced response. Alternatively, make good use of fixed income + funds to strive for a relatively stable investment experience in the long run.