The bull market is coming, ETF, the best choice for retail investors

July. 31,2023
The bull market is coming, ETF, the best choice for retail investors


Many people look down on ETFs for just a few reasons.


1. Don't know. I don't even know that there is an ETF. Even if I have been trading stocks for 10 or 20 years, I have never heard of an ETF. This is called ignorance, that is, not knowing.


2. I feel that ETFs have risen too slowly, not as fast as stocks. Really? CSI liquor is 16 times in 10 years, CSI consumption is 16 times in 17 years, medicine is 10 times in 10 years, 500 low wave is 10 times in 10 years, even the most smelly SSE 50 has risen by 30% in the first half of this year, maybe 90% of people Haven't run before!


3. ETF is not stimulating, and there is no daily limit. The daily limit of the board is more exciting, I do not rule out short-term boarding to make a fortune, but you ask yourself, is it you? Are you playing board games? The big institutional players rely on this thing to rob you. Grabbing a few boards, I am complacent, and feel that I have found a knack for playing boards, and I have to return sooner or later. You can't take it with you.


Once you are successful, why do you feel that you are one in a million? Most people who always think they are smarter than others are turned into cannon fodder.


You start to make money when you admit that you are mediocre, but it is difficult. How many people in the stock market will admit that they are mediocre?


4. ETFs are boring. That's right, ETFs are really boring. Buy when the valuation is low, wait, wait for the high valuation and then sell it, and do nothing at other times. Good deals are boring. The biggest difficulty in investing lies in the "art of waiting", that is, always waiting, waiting to buy when it is cheap, and then waiting to sell when it is expensive.


Isn't this the most suitable for retail investors?


What should you do? You don’t need to research individual stocks, you don’t need to look at financial statements, you don’t need to pay attention to the announcements of listed companies, trends, industry developments, and nothing. Isn't it good? Isn't it good?


Without 8-10 years of research on industries and individual stocks, do you think you really understand it? Even if you study for 8 years and 10 years, do you think you must be right? The big blue-chip quotations of the coal flying color dance in 2007, the small and medium-sized board quotations in 2009, and the technology media quotations in 15 years. The industry trends have been changing. Wait for you to get the industry through, and then the sunset is over. Several times in a lifetime. Is it really worth it?


The chairman of a listed company does not know the future direction. Are you an outsider sure you can really understand the future of the company? China’s stock market is full of rubbish, and the 3,600 listed companies have no more than 200 valuable companies, which means that there are still 3,400 companies that will experience mean reversion at any time.



Those who enter the stock market are all human beings. When you feel that you are mediocre and you lower your head to buy ETFs, it means you are mature. 90% of retail investors are really not suitable to buy individual stocks. They use the high and low valuations to buy and sell. What should I do? No need to watch the market all day.


Some people will ask "Investment is so simple?"


Yes, it really is that simple!


Naturally understand! It makes sense at one point, people who don't understand are useless.


There are many people who understand this truth, but they are unwilling to do it, and unwilling to gradually become rich!


Since last year, I have been using ETF for most of my positions. Relying on ETF has allowed me to avoid the black swan that has been everywhere for 18 years. Relying on position management has made me lose very little in 18 years; I also relied on ETF in 19 years. Outperformed most of the people around him, many of whom are still masters I thought before.