Year of the Ox! Bull market!

    Today is the first trading day after the Spring Festival of the Chinese Year of the Ox. "The plan of the year lies in the spring", which carries too many expectations and hopes from everyone. During the week-long Chinese New Year holiday, the slowdown of the pandemic in the United Kingdom and the United States is the main trading theme of global market. The prospect of economic recovery has stimulated the favor of risky assets, and the start of the Year of the Ox in mainland China continued a similar momentum. A-shares opened sharply higher, setting a new high since August 2015.

    The market opened sharply higher, but the style encounter in a big switch. Many previously high-price and grouped stock fell sharply, but the low-price cyclical sectors were strongly sought by funds. There are several important factors and highlights for this differentiation situation:

    On the one hand, the rise in the non-ferrous metals, chemicals and agriculture sectors is more due to inflation expectations. Especially under the loose stimulus in Europe and the United States, the global economic recovery is expected to continue, but the expectations for inflation are also continuing to ferment simultaneously.

    On the other hand, the conversion of market driving forces also play an important role. At the current time when the liquidity is marginally tightened, the liquidity drive has basically come to an end. The fundamental drive is gradually relayed. Under the recovery cycle of the economy and corporate profits, the performance drive will be the main force of the market in the next stage. At this time, many high-valued varieties need to be supported by performance. Once performance no longer support, then there is a very high possibility of the stock price stepping back. At this time, it is easier for funds to find new undervalue stocks.