Bull market coming, or old problem, what is the basis of the rise?

As this way up, 4,000 points in the short term can be breached, although there will be some repeated but the market will not change the nature of the rise. In the distance, said, 6100 the highest point of history is no longer a goal, the end of this round of the bull market will be far higher than this, there are latent profit opportunities are still many. The four-quarter purchase of TCL, which I had repeatedly recommended, now yields more than 200%. But it's all in the past, or it's about the future.
What is the basis of this bull rally? At present, see positive, there is the prosperity of margin financing, Hong Kong and Shenzhen Tong and the introduction of the road, and so on, but these benefits are only superficial phenomenon, to this question some sentiment, but also from China's economic restructuring of the great environment to consider.
The current global economy is at risk of deflation, with falling commodity prices such as oil, which means lower prices for industrial goods, underemployment, falling consumption and even future large areas of unemployment, of course, falling prices and the ability to buy money. But the lack of consumption does not mean that people do not want to spend, but do not want to use the way of consumption in the past, people are more inclined to the innovative flow of supply, that is, you have to change consumer supply way consumers will buy.
People's consumption preferences are shifting from traditional consumption patterns to new forms of consumption. The state also issued relevant policies and industry guidance in due course, to lift the internet to occupy a major position in the economy. From the production level, the introduction of the Internet can help reduce the cost of industrial production and improve efficiency, from the consumption level, the Internet of circulation links in addition to the cost and efficiency of the role, but also to stimulate new market demand, create a new consumer market. Therefore, the Chinese stock market and the Internet-related stocks are good, in fact, the Internet-related concepts is the mainstay of the current round of the bull market.
Although the pace of the bull market is still relatively stable, but for ordinary investors, or to their own heart. The process of transforming the traditional economy to the new economy will not happen overnight, nor will it be successful only with the rise of several internet stocks. The stock market rise can bring a very strong promotion to this transformation, let those enterprises have sufficient funds and resources to go down to do, but ultimately still want to see the actual effect, this includes consumer confidence, transition efficiency and so on. The internet is not entirely low-cost and efficient, after this bull market, will be out of the things that are out of the mark, leaving true gold and silver.
If the bull is divided into three segments, each stage has different requirements for the investor's mind. The first stage in addition to see the rising trend, you do not think about anything, right and wrong at this time is not important, see right is wrong, wrong is right. In the second stage you have to think carefully about whether your past successes are accidental or inevitable, what are false successes, and which are based on your own judgment, not on random operations. The third stage is the most important, be careful everywhere, many people will take the past wrong success as a matter of course, and the risk arises at this time.
at what stage is currently not accurately described, I personally feel is in the first stage of the bull market and the second phase of the junction. The real big shock will be in May, when the Shanghai Composite index may be around 5,000, and the timing will be at least three months before it continues to challenge new highs. There is a proverb on the stock market called leaving in the May,then go Moz, not unreasonable. This period of hot switching will make you dazzled, remember not to fall in love with stocks.
It is not the time to emphasize risk, but to emphasize the profit-making effect, but the awareness of risk is undoubtedly going to become heavier as the market evolves. In fact, the biggest risk in the bull market is always not catch up with the hot spot, in this sense, many people's best strategy is not as good as holding, as the TCL example.