"Broad US Stock Market Rally: Gentle Rise, Friendly to Retail Investors"
Look far and wide! The U.S. stock market is on a full rise, and although it rarely sees skyrocketing, it is a friendly trend for retail investors.
The slow bull market in the U.S. stocks: A feast for retail investors, a myth for A-shares?
Warren Buffett once said, "If you don't like a company, don't hold it for ten years." But in the U.S. stock market, it seems that you can buy blindly and still make a fortune after ten years. Is it that Buffett has become confused, or does the U.S. stock market truly have the magic to turn stones into gold? Today, let's talk about this slow bull market in the U.S. stocks and see how it allows retail investors to "win while lying down," and whether A-shares can replicate this "myth."
U.S. stocks, especially the S&P 500 index, have been pleasingly rising in the last two years, breaking through 5800 points and aiming for 6000 points. This is not a myth of "getting rich overnight," but a steady and slow bull market. Unlike some markets that fluctuate dramatically, playing with your heart rate, the U.S. stock market is more like an old ox, taking one step at a time, moving steadily forward. This trend is simply good news for retail investors!
Think about it, if you ride a roller coaster, it's thrilling, but it's too much for the heart! You might be thrown off一不小心 and lose everything you have. The "old ox" of the U.S. stock market is different; it moves slowly, giving you enough time to get on board, and it's stable, so you don't have to worry about sudden stops. As long as you follow it slowly, you can share in the profits and enjoy the gains.
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Why can the U.S. stock market achieve this slow bull market? The reason is simple, it relies on real skills! Look at the "seven fairies" of the U.S. stock market—Apple, Microsoft, Google, Amazon, Tesla, Nvidia, Meta—each one is a resounding name. They don't rely on speculation, but on solid performance.
Take Apple, for example; it distributes and repurchases billions of dollars every year, which is like giving out red envelopes to shareholders! It's like lifting itself up, how can the stock price not rise? Microsoft is not far behind, with generous dividends that make investors smile from ear to ear. These tech giants are like the "God of Wealth," with funds pouring in continuously, and the logic of long-term investment is clearly visible.
On the other hand, looking at our A-shares, many companies only know how to speculate on concepts, today it's the metaverse, tomorrow it's blockchain, the day after it's artificial intelligence, but how many can really present eye-catching performance like Apple and Microsoft? Not to mention dividends and repurchases, many companies are eager to empty the pockets of shareholders, reducing their holdings and cashing out, running faster than rabbits.So, the prolonged bull market in the U.S. stock market is not a windfall from the sky, but relies on two major treasures: performance support and a mature stock market culture.
Firstly, the core companies in the U.S. stock market, such as the "Seven Fairies," are financially robust and have strong performance. They do not rely on deception but on their solid ability to make money to attract investors.
Secondly, the stock market culture in the U.S. is more mature and focuses more on shareholder interests. Unlike some markets where companies cash out at the drop of a hat, U.S. companies are more willing to share profits with shareholders through dividends and buybacks. This philosophy of "everyone doing well is truly good" is the key to the long-term healthy development of the stock market.
Think about Microsoft, which also experienced a low point in the past, but it relied on a stable dividend policy to retain a group of loyal long-term investors, eventually emerging from the predicament and achieving today's brilliance. This mature way of capital operation is worth learning for our A-share market.
In the A-share market, sharp rises and falls are common, just like a person who gets sick every three days and two nights. Who dares to accompany him for a long time? The slow bull market in the U.S. tells us that if you want to make a lot of money in the stock market, you can't always think about "getting rich overnight." Instead, you should be like a farmer, patiently working the land and holding long-term those companies that truly have value and can continue to pay dividends.
The biggest problem with our A-share retail investors is that they are too impatient, always trying to catch the next "demon stock," but the result is often "stealing chickens and losing rice." U.S. retail investors are much more stable, focusing more on long-term value investment, like old farmers, slowly waiting for the fruits to ripen. This mindset is what we should learn.The big shots in the U.S. stock market not only know how to make money, but also how to share it. Their dividend and share repurchase policies are both a sign of respect for investors and the cornerstone of long-term stable stock price increases. If companies in the A-share market could learn more from them and consider the interests of shareholders more, they could attract more capital and form a healthier investment ecosystem.
"Good work takes time," and the "slow bull" in the U.S. stock market is the best proof of this. A bull market is not about soaring prices, but about endurance. How long you can persist in this race determines how far you can ultimately go. So, stop fantasizing about getting rich overnight. Seizing the "slow bull" is the real key to wealth!
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