FangQuant › Financial Futures

The market logic of 2017 VS 2018

Fang submitted 2018-04-04 15:11:45

The market logical in 2017 is relatively simple. Firstly, the recovery of economic fundamentals exceeded expectations, both in consumption and cycle industries;
Secondly, the advantages of various industries are concentrated. The market share of quality leading companies rose. The performance growth was also generally strong; thirdly, the valuation of high-quality blue chips is very low at the beginning of the year, and valuation restoration and performance growth occur at the same time throughout the year; fourthly, domestic institutionalization coincides with the internationalization of A-shares. In particular, the northbound funds through SH-HK and SZ-HZ Stock Connect flowed more into high-quality enterprises.

All above is hard to occur again in 2018.
In 2018, the main gain comes from the performance growth. It is some difficult to make money from valuation again.

Now the main risk of the market is
Firstly, there would be a downward adjustment in economy; Secondly, due to various factors, the interest rate of the economy has risen sharply over a period of time. Thirdly, the valuation of the entire market is particularly high.

For investment opportunities, it would still come from new changes in technologic and innovation.


Copyright by FangQuant.com


Currently no Comments.