Big Seven Announcement: The Prelude to the Financial Turmoil? In-depth interpretation and rational investment guide
When you see the news that seven giant companies are speaking out on the same day, do you feel a sense of "pie in the sky" in your heart? It's like a mysterious trailer you just listened to, which makes you instantly full of anticipation and nervousness, is this a prelude to a financial storm, or a gorgeous flicker? As a small partner of ordinary investors, how can we remain invincible in this ripple?
In the following text, I will break down the "truth" of these announcements and teach you how to stand in this ever-changing market, we analyze it from multiple angles to ensure that you can remain calm and sober in the face of this trend
The game behind the announcement
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The respective announcements of these giant companies are actually a well-planned "game", what they call share buybacks, capital increases and production expansions and executive changes, on the surface it seems gorgeous, in fact, there are a lot of mysteries behind it, is not every announcement is full of dry goods, worth chasing? We'll have to think about it
The share repurchase is like a "letter of confidence", sincerity pharmaceutical and Decai shares generously announced that they want to repurchase their shares, which not only conveys the company's confidence in the future development, but also tells the market: "We feel that the current stock price is undervalued, and the future is very optimistic!" "Don't get carried away by this confidence, because confidence in the stock market is sometimes superficial, and it can also be a sign of anxiety about the current financial situation
Calmly analyze the ocean of information
In the face of these announcements, keep one thing in mind: calm down! Don't let the overwhelming information get carried away by the overwhelming information, we need to divide it into two and look at the superficial "good news"
Buying back shares can convey the confidence of the management while not necessarily meaning that the company's prospects are necessarily good, for example, Zhenjiang shares and Hanrui Cobalt announced to expand production, which is undoubtedly a radical market preemption, only time can reveal whether this can be successfully converted into profits, the market is an unstable factor, overexpansion in the current economic uncertainty, may be like a ripped off the band, as soon as you let go of the band to bounce back
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Avoid blindly following the herd
If you are a rational investor, don't blindly follow the trend when you see these announcements, you must also want to know, how to judge whether a company is worth investing in, my advice is to first look at the company's financial data and market trends
Oriental fortune stock price soared 30% one day, many people could not resist this attraction for a while, eager to try to "chase high", but behind the fluctuations, not necessarily all good news, although the company emphasized that there is no major change in the operation, but the stock price so violently fluctuated suggests that the market sentiment has been pushed up, at this time chasing up and down is not a good idea at all, the old saying goes: "strong wind is not necessarily a good thing," don't let emotions lead the way, rational judgment is king
Behind the executive changes
The resignation of the deputy general manager may seem common, but the sensitivity of the market should not be underestimated, will such a change lead to a major adjustment of the company's strategy? This is by no means something we can ignore lightly, and be careful to sail the ship of ten thousand years
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For the company's equity incentive plan, some investors may show too optimistic sentiment, Jinghua New Material's equity incentive may be able to improve employee morale, but the success of the incentive plan often depends on the company's long-term development, this enthusiastic "incentive" does not mean that the company will be thriving in the future
Maintain sanity and restraint
In the face of the announcement of the seven giants, the key is that we should remain sensible, not be confused by short-term information, do not easily follow the trend, but combine financial data and industry development trends to make wise decisions
Rational investment needs to be based on time as the fulcrum, balance short-term fluctuations with long-term value, be good at using data and market research, keep up with the pace of the times, look at the financial chart behind the company, and don't just be blinded by the gorgeous announcements on the surface
The financial market is still in full swing, and this announcement of the seven giants is like an introduction, igniting the spark of this game, maybe at some point in the future, the market will give us a surprise ending
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Say goodbye to impetuousness, take a long-term view, don't let short-term fluctuations affect the mentality, always be vigilant, keep a clear head, and actively respond to changes, let us look forward to a clearer sky and a harvest season after this storm