Beginning in mid-late June, there was a clear correction in the global AI chain. In particular, South Korea, which has “high leverage, high congestion, and high retail investors”, was the most severe. Behind this are not only the amplifying effects of high crowding and high leverage, macroeconomic disturbances, but also market concerns about the bubble that AI has reached this point where it has reignited. In fact, before the bubble finally burst in March 2000, the Science and Technology Network market also had at least four rounds of large-scale and lengthy pullback. The triggers for the decline are highly similar to the current round of adjustments: short-term twists and turns in industry trends; “headwinds” in the macro environment; and overheating valuation sentiment. And in the end, technology stocks were able to rebound again, due to the easing of pressure on these three areas. Therefore, in response to the present, stabilizing the market or even restarting a new round of growth requires the cooperation of these three. As long as industry trends do not change, it is not a bad thing for the market to absorb overvaluation and overcrowding; a pullback will increase the odds room. The easing of the Federal Reserve's austerity pressure or the landing of boots will also help improve the market environment. However, the most important thing is industrial catalysis; otherwise, it would be more stable and difficult to start a new, larger round of the market. Until then, we can focus on short-term certainty and “bottleneck assets,” such as the general direction of America's lack of electricity and China's core shortage. If you are concerned that hardware catalysts will be too slow to cash out or that the magnitude is limited, you can consider a phased balance in the direction of less resistance to fundamentals, such as the Internet and innovative drugs. Cyclical and pan-external interest rates will have to wait for interest rates on US bonds to fall.

Beginning in mid-late June, there was a clear correction in the global AI chain. In particular, South Korea, which has “high leverage, high congestion, and high retail investors”, was the most severe. Behind this are not only the amplifying effects of high crowding and high leverage, macroeconomic disturbances, but also market concerns about the bubble that AI has reached this point where it has reignited. In fact, before the bubble finally burst in March 2000, the Science and Technology Network market also had at least four rounds of large-scale and lengthy pullback. The triggers for the decline are highly similar to the current round of adjustments: short-term twists and turns in industry trends; “headwinds” in the macro environment; and overheating valuation sentiment. And in the end, technology stocks were able to rebound again, due to the easing of pressure on these three areas. Therefore, in response to the present, stabilizing the market or even restarting a new round of growth requires the cooperation of these three. As long as industry trends do not change, it is not a bad thing for the market to absorb overvaluation and overcrowding; a pullback will increase the odds room. The easing of the Federal Reserve's austerity pressure or the landing of boots will also help improve the market environment. However, the most important thing is industrial catalysis; otherwise, it would be more stable and difficult to start a new, larger round of the market. Until then, we can focus on short-term certainty and “bottleneck assets,” such as the general direction of America's lack of electricity and China's core shortage. If you are concerned that hardware catalysts will be too slow to cash out or that the magnitude is limited, you can consider a phased balance in the direction of less resistance to fundamentals, such as the Internet and innovative drugs. Cyclical and pan-external interest rates will have to wait for interest rates on US bonds to fall.