- 2024-10-05
- News
Will Last Night's US Stock Plunge Drag Down A-Shares? No Panic Needed for Retail Investors
Last night, the Nasdaq Composite plummeted by 1.6%, with Nvidia's shares dropping even more, by 2.81%. The technology stocks and semiconductor sectors were hit hard, and the S&P Biotech Index also saw a significant decline of 1.63%. Let's discuss today how much impact this might have on the A-shares market.
Speaking of this, I believe many retail investors are wondering, will the A-shares follow suit and fall? Don't worry, listen to me first. At this moment, we need to remain calm. Although it's likely that the A-shares will open lower, I think there's a good chance they will fluctuate and turn red later on. No matter how bad the external environment gets, our A-shares still have their own resilience. Fluctuations around the 3300 point level are foreseeable, and a significant drop is not expected. Stocks that are inherently worth speculating on will continue to hit their upper limits.
In general, the sharp decline in U.S. stocks and the slide in gold prices may actually lead to capital inflow into the A-shares market. The A50 futures index fell slightly by 0.68% last night, which is not necessarily bad news for us. For those strong leading stocks, the trend has not changed. If there is a short-term decline, it is actually an opportunity to buy low, and retail investors do not need to panic and sell off just because of minor fluctuations.
Let's take a closer look. The high-positioned brokerage and semiconductor sectors are indeed worth being cautious about, as stocks in these sectors have not performed well recently. However, for those sectors that are in a low position, you might consider appropriate allocation and enter in batches. At this time, a low-absorption strategy might be more effective.
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Let's also talk about the Hong Kong stock market, where the trend of U.S. stocks will be more evident. The Hong Kong stock market is expected to open lower and continue to fluctuate today. Although we often say "A-shares and Hong Kong stocks are one family," in the face of market sentiment fluctuations, the independence of A-shares remains a pillar we can rely on. Even if U.S. stocks plummet, it won't last forever; Tesla's shares actually surged by 12% after the market closed, which brings us a glimmer of hope.
As a seasoned investor, I think it's equally important to pay attention to the trend of U.S. stock ETFs. If the Nasdaq ETF or Nasdaq Technology and other related ETFs open lower, we might consider it a good opportunity to buy low. Investing is not just about looking at immediate gains and losses, but also about grasping future trends.
I would like to share my own investment journey with you. Having experienced many market storms, I am well aware that stock market fluctuations often make people restless and anxious. However, calmness and rationality are the keys to our victory in this war without smoke. Market fluctuations make us uneasy, but they also provide opportunities for us to find chances. Today's lower opening may make many retail investors uneasy, but we must understand that a lower opening is not necessarily a bad thing; it could be our time to enter the market.The recent market trends remind me of a saying: "Opportunity always favors the prepared mind." We must remain vigilant at all times, closely monitoring market changes to identify our own investment strategies. Today's market has shown us different possibilities, and the chance to buy low might be right in front of us, as long as we stay alert.
To sum up, it is highly likely that A-shares will open lower today, but then they will fluctuate and turn red, with fluctuations around the 3300-point mark being what we can anticipate. In such a market environment, we should rationally view the performance of individual stocks, especially those strong stocks that still have potential. Timely buying low and reasonable positioning will be our secret to maintaining competitiveness in this volatile market.
For us seasoned investors, mental stability is the most important. In this unpredictable stock market, staying calm, seizing opportunities, and meeting challenges is the attitude we should have. The future market will remain complex and changeable, but as long as we hold firm to our beliefs and operate reasonably, we will inevitably carve out our own path to success in the long journey of the stock market.
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