Making Money is the Only Goal of Investment
Weekly Market
Period: 20200413-20200417
| Market | Index | This Week (%) | 1 Week Ago (%) | 2 Weeks Ago (%) | 3 Weeks Ago (%) |
|---|---|---|---|---|---|
| Shanghai Composite | 2838.49 | 1.5 | -1.18 | 0.58 | -0.3 |
| Shenzhen Component | 10527.99 | 2.23 | -1.86 | 1.17 | 0 |
| ChiNext Index | 2020.77 | 3.64 | -2.27 | 1.72 | 0.15 |
| Hang Seng Index | 24380 | 0.33 | 4.58 | -1.06 | 2.98 |
| HSCEI | 9815.17 | 1.35 | 4.06 | 1.25 | 3.98 |
| Red Chip Index | 3792.05 | -0.29 | 5.9 | 2.06 | 3.76 |
| Dow Jones | 23537.68 | -0.77 | 12.67 | -2.7 | 12.84 |
| Nasdaq | 8532.36 | 4.67 | 10.59 | -1.72 | 9.05 |
| S&P 500 | 2799.55 | 0.35 | 12.1 | -2.08 | 10.26 |
This week, the Shanghai Composite Index rose 1.5%, the Shenzhen Component Index rose 2.23%, and the ChiNext Index rose 3.64%. The Hang Seng Index and HSCEI rose slightly, and the Red Chip Index fell slightly. The three major US indices diverged, with the Dow falling slightly, the Nasdaq rising 4.67%, and the S&P rising slightly.
Northbound funds had a net inflow of 30 billion yuan, a high in recent weeks.
Events
GDP in the first quarter was -6.8%, the first contraction since 1992. However, the stock market looks forward, and the impact of the first quarter has been fully digested by the market.
The central bank’s digital currency (DCEP) has begun internal testing in Suzhou, Shenzhen, Xiongan, and Chengdu. Unlike Bitcoin and other cryptocurrencies, DCEP is a legal tender, that is, the digital version of the RMB, which is endorsed by state credit and has controllable anonymity characteristics. In the long run, it will help the internationalization of the RMB.
Positions
Continue to add positions at low prices in technology, consumption, and commercial theme funds.
| Type | Code | Name | Action |
|---|---|---|---|
| Stock | SH000889 | Zhongjia Bochuang | Clear |
| Stock | HIMX | Himax Technologies | Hold |
| Fund | F210008 | Golden Eagle Strategy Allocation Mixed | Add |
| Fund | F519674 | Galaxy Innovation Mixed | Add |
| Fund | F005311 | Wanjia Economy New Kinetic Energy Mixed A | Add |
| Fund | F000363 | Guotai Juxin Value C | Add |
| Fund | F005911 | Guangfa Dual Engine Upgrade Mixed | Add |
| Fund | F161725 | China Merchants Liquor Graded | Add |
| Fund | F163415 | Xingquan Commercial | Add |
Thoughts
There is only one purpose of investment, and that is to make money. Being a friend of time, value investing, helping companies grow, these are all means, not ends. If you can’t make money, these means are all nonsense.
In the stock market, there are two ways to make money: earning the enterprise’s money (dividends and growth) and earning the fool’s money (playing against each other). Earning the enterprise’s money is slow but stable and sustainable; earning the fool’s money is fast but risky and unsustainable, because fools will also learn, and there will not always be fools for you to play against.
For retail investors, the best strategy is to mainly earn the enterprise’s money, and occasionally earn the fool’s money. Do not reject earning the fool’s money, and do not rely on it.
Published at: Apr 18, 2020 · Modified at: Dec 4, 2025
