Chapter 722 - 302: My Wife Disagrees! (Part 2)
Recently, the A-share market has been doing well, as domestic substitution has achieved unexpectedly good results.
Plus, with last year’s consumer stocks slumping and rebounding this year, the major index unknowingly rose from 2600 points to 3000, and blue-chip stocks have generally doubled over the past year.
Moutai has risen from 500 yuan to 1000 yuan, and that’s even after a dividend adjustment per share of more than ten yuan.
The four funds managed by Jiang Banxia have seen an overall floating profit of 90% over the past year and a half, with only the last sixteen trading days remaining.
The market is still very hot, with more than one trillion yuan in trades over twenty-three consecutive trading days, reaching a maximum of 1.1 trillion yuan.
"Master Jiang, how much do you have in positions now?"
"Huh? Only half a position left..."
Li Yang asked, "Do you want to adjust the positions?"
"Sure."
Jiang Banxia didn’t even think it over.
With the four funds now totaling over 600 billion yuan, adjusting positions is a complicated matter, but since Li Yang mentioned it, she definitely agreed.
Li Yang said seriously, "I just feel something’s a bit off recently. Let’s clear out 30% of the positions, then make some adjustments."
"Clearing 30% of the positions might be a bit tight on time."
"No worries, just start selling directly! With the current market, the market can handle it, freeing up positions makes it easier for us to adjust. I’ll be with you over the next few days."
"Oh, alright, start this afternoon then?"
"Yeah!"
At the beginning of next year, two trading days will come with thousands of stocks falling to their limit; if Wanliu Capital is fully positioned, the losses would be massive.
Besides, the market has overheated recently, with too many retail investors rushing in.
No matter how much Li Yang sells, it won’t trigger a crash of thousands of stocks unless a complete liquidation is done.
Cooling down the market in advance makes those people stop rushing in.
If they can’t be dissuaded, there’s nothing he can do.
At one in the afternoon, when the market opened, Li Yang and Jiang Banxia went to the trading room together.
Even the stocks that he was very optimistic about, he threw the chips without hesitation.
Amid a good market rising by 3-4 points, it suddenly plunged by 3-4 points, leaving the market bewildered all at once.
The next day, market funds thought the sentiment would be repaired, but just as it rose a bit, it was sold off again.
Not only were the retail investors confused, but even those institutions were left clueless.
Someone was *hitting the market hard and it wasn’t a small player.*
Every day, hundreds of billions were being sold off on the market.
In reality, Wanliu Capital’s daily adjustment amount was a full 60 billion, forcibly raising the two markets’ transaction amounts to 1.2 trillion.
Others didn’t know, but Jiang Baichuan was aware, and a few others knew as well.
But Jiang Baichuan ordered them to keep quiet, not to leak a single word.
After the market closed on the second day, he called Li Yang.
"Li Yang, what’s going on with the mad selling on your end?"
Li Yang chuckled and said, "Aren’t we just following your instructions? The major index is about to hit 3000 points, we need to cool it down."
"Hmm? Who instructed?"
"It was my wife’s instruction, she said that domestic finance shouldn’t overheat, otherwise it would severely impact industrial development. Plus, with the New Year approaching, many fund investors are redeeming, and we also need some positions to handle that. You know, the fund investors who buy into Wanliu Capital are all poor. Many people have only saved a hundred thousand yuan in a lifetime, and sometimes..."
Li Yang’s words left Jiang Baichuan speechless.
Jiang Baichuan understood, Li Yang wanted to take some profits. After all, the plate of Wanliu Capital was getting too large now.
Not like other funds, simply aiming to earn management fees, without concern for investors’ losses, wishing for more money.
"Sigh, alright, I get it, take it easy."
"Absolutely! Freeing up another thousand billion positions is enough to handle it."
Jiang Baichuan: "..."
Too aggressive!
However, it’s also his understanding of Li Yang and Jiang Banxia.
Without aggression, how could you make big money?
After all, what they make is not their own, Wanliu Capital gets a fixed management fee, compared to the earnings, it’s a drop in the bucket.
With over 300 billion in funds, a 90% floating profit was achieved in just a year and a half.
In the A-share market, no one has made that much money.
Wanliu Capital never hedges risks; it’s just reckless, just doing it!
Yet each time their timing is just right, driving the fund cycle to arrive.
Actually, the fund’s frenzied pursuit of blue-chip stocks is also a sign of economic weakness, as small-cap stocks no longer have room to rise, unable to create miracles like before.
It also indicates that domestic market shares have almost been divided up, and it’s the season for big enterprises to pick the peaches.
The stock market is indeed the barometer of the economy, shown vividly at this moment.
He believed that with Jiang Banxia’s insight, she could indeed foresee the upcoming risks.
Only Li Yang knew that this risk was delayed by another thing.
If not delayed, then in the second half of 2020, the stock market wouldn’t be able to sustain a big rally, the major index would top out at around 3300 points.
A delay represents super profits.
For this matter, Li Yang didn’t even go to Wanliu Global Selection much, only keeping an eye on the progress daily.
Unknowingly, the Little New Year arrived.
The situation on the Internet escalated, it was becoming hard to find masks.
Online, either prices surged several times higher or low prices tempted people into orders without shipment.
Even if shipped, it would at least be ten times more expensive.
The nine locations of Green Water Heaven and Earth had adequate mask supplies; the previously fashionable types were no longer sold. Now mainly selling two types, one at one yuan for two, limited to one pack per mobile number, which is fifty pieces.