Is the bull market a good time for retail investors to enter the market?

For ordinary retail investors, the bull market is more likely to lose money. In these bull markets, most retail investors didn't really make money. All they got was blood and tears.

First analyze why retail investors are more likely to lose money in a bull market. Then talk about how the bull market buys funds.

Why are retail investors more likely to lose money in a bull market? I combed it, mainly for these reasons.

(1) retail investors often know.

Ordinary retail investors are insensitive. When they feel the bull market, it is basically in the middle and late stages, and friends around them make money by investing, which makes them feel that the bull market has finally come.

Therefore, the timing of their entry into the market is not good, and the buying position is relatively high.

It is difficult to make money if you buy it too expensive.

(2) In a bull market, investors are often greedy.

Because the timing of ordinary retail investors entering the market is relatively late, when the peak of the bull market comes, his profit ratio is relatively low compared with investors who entered the market earlier.

For example, my friends around me have doubled their income from this wave of investment. How can I get a 20% return? It must be doubled.

At this time, retail investors are usually a little irrational, taking it for granted that everyone in the bull market should double or even higher their income.

Because of greed, I missed the best opportunity to lighten my position, and finally all the profits were retreated, and the loss principal left with tears.

An example of retail investors losing money in a bull market is how to buy funds in a bull market.

It's definitely not a blind purchase.

Buying funds in a bull market should pay more attention to quality.

Why do you say that? The main reasons are as follows.

(1) The increase of excellent funds is even more impressive.

In a good environment, just like the natural environment, trees with fertile land and high quality will grow taller and stronger.

The same is true of funds. The bull market is equivalent to fertile soil, and the number of excellent funds with good quality will increase even more.

A good fund may double the bull market, and a poor fund may only earn 20%. This is the gap.

(2) The cow comes to an abrupt end, not a feather.

When will the bull market end? No one can guess. But a good fund has a certain resilience.

Take the previous example for example. In the same period, the income of excellent quality funds doubled, and the bull market may fall by 50%, which is equivalent to returning to the starting point without making money.

However, if the fund with poor quality only rises by 20% when it goes up, if it also falls by 50%, it is equivalent to losing 40% of its principal.

This is secondary. More importantly, if you buy a bad fund, you may not be able to return it before the next bull market comes.

However, even if the short-term retracement is lowered, the long-term fundamentals are still improving, and it is not necessary to wait until the next bull market to return to profit.

After talking about these basic principles, let's talk about which funds in the bull market may become better funds.

(1) medical consumption sector.

Drinking and taking medicine is a tradition in our A-share market, but when the bull market comes, the income of these two sectors is very good.

Needless to say, the increase of medical fund has basically doubled this year. In terms of consumption, the growth of liquor food and beverage is also very good.

(2) Brokerage plate

Brokers are the direct beneficiaries of the bull market. After the Spring Festival, the brokerage sector also continued to exert its strength, and the brokerage stocks held by individuals almost doubled.

(3) old and new infrastructure departments.

New and old infrastructure should be a focus of this year's bull market. The old infrastructure is traditional real estate, roads and railways.

The new infrastructure has a stronger sense of technology. For example, photovoltaics, such as new energy, are highly oriented industries. This year's trend remains unchanged and it is worth configuring.

Finally, to sum up, the bull market cannot blindly buy funds. You can make money if you buy well, but you will lose if you buy badly.