The bull market is still there, and the concentration of funds to the head is a global law

Recently, Lin Yuan accepted an exclusive interview with the media and talked about his judgment on the current A shares. In my opinion, some of his views are not only applicable to A shares, but also to the digital currency market. Today I will share with you some of the points he mentioned in this interview.

1. "Now is not the time to talk about the 'top'. The (bull market) has just begun, and everyone is still losing money. How can it reach the top? When will the rise be so high that no one can believe it? Set up".

Recently, A-shares have entered an adjustment period, especially for many fund products, which have experienced a considerable decline. So many media began to say that A shares have risen for almost two years, and now they have reached the peak.

I have always disagreed with this view. It is true that A-shares have risen for two years. I myself stopped regular investment in 2019 because the price of A-shares rose gradually. But in fact, the increase in the two years of 2019 and 2020 is basically silent. Big news, it is very difficult to count the gains in the past two years as part of the bull market.

At present, there are still a large number of sectors in A-shares whose prices are not high. This alone can show that even the head of the bull market has not seen much.

So Lin Yuan said: Many stockholders are still losing money, and it is impossible for A shares to reach the top. And when it rises to the point that no one can believe it, and when almost everyone is making money, the stock will be considered to be at the top.

This summary of Lin Yuan is basically the iron law of all investment markets, and it is also what I have written in the article.

Looking back at our digital currency market, the situation is much stronger than that of A shares. Except for those who play leveraged contracts, I am afraid that there are not many people who lose money, and it is more because they lost their chips too early.

But according to the iron rule summed up by Lin Yuan, if it rises to the point where no one believes it, the current situation of digital currency is far from being reached.Therefore, we can hold the chips in our hands with peace of mind as always.

2. "The concentration of funds to top companies is a global law"

This sentence of Lin Yuan means that the better the stock, the more top the stock, the more funds will be held in groups. I very much agree with this rule. In fact, on the one hand, this is a spontaneous behavior of institutional investors for the sake of investment safety, and on the other hand, it is also because the stocks of top companies often have good liquidity, which is convenient for trading and cashing out when they want to be realized.

In the digital currency market, this rule also applies. Not to mention Bitcoin and Ethereum, we often see that many other well-known digital currencies also have large capital holdings. This is also the reason why in last year's article, I often suggested that you hold the top projects in the DeFi field, and last year I repeatedly listed the top DeFi projects in my opinion. As for some unknown and featureless altcoins, I suggest that you should not touch them.

Of course, the prices of all these leading projects are already very high now, but we can continue to pay attention in order to make a layout in the next bear market.

In the interview, the host asked Lin Yuan: The mentality of some investors is: Many investors are clear about the analytical framework of investment, but they can’t hold it in the process, what should they do if they want to run away when there is a fluctuation? Lin Yuan's answer is that everyone's reaction is different, and he doesn't have any suggestions. Investors can do whatever they think is good.

In my opinion, this reply is equivalent to asking everyone to live in their own destiny and leave if they want. I was also like this when I first entered the stock market, but after a series of exercises and restraint, I gradually overcame this mentality. For the specific process, you can read the previous series of articles "My Investment Experience". Therefore, I do not agree with Lin Yuan’s reply. I think this problem can be corrected, and for a mature investor who wants to gain a foothold in the market for a long time, this point must also be corrected, otherwise he will always be at the mercy of others. fish.

In addition, Lin Yuan also believes that stocks are the best allocation right now. I think that if I don't know digital currency at all, I will devote my main energy to investing in stocks, especially the layout of A shares. But now that I know digital currency, it has much more space than A shares.

Thinking of this, I really feel very lucky to be able to enter a field that many investment leaders do not understand or even misunderstand.And then we will see that this field will usher in a new peak in history.