To The Moon

The Shanghai Composite Index has hit a nearly 10-year high. You would think everyone would be shouting "the bull market is back," right? But instead, many chat groups are discussing whether it is time to cash out now that a new high has been reached, worried the bull run might be ending. I find this cautious sentiment interesting, especially given the current market dynamics. Despite the uncertainty, I remain bullish for Chinese assets, believing there is still potential for growth.

Looking at the WeChat Index search trend for "bull market," sentiment is only just starting compared to last year's September 24 levels. This suggests to me that the market enthusiasm might not yet be at its peak, which could indicate room for further upward movement. I see this as a positive sign, reinforcing my confidence in holding onto Chinese assets. The gradual rise in sentiment aligns with my view that the market has not yet fully capitalized on its potential.

Do I hold Chinese assets? Yes, I do, and I believe the long-term undervaluation of these assets presents a compelling opportunity. With the Shanghai Composite Index reaching a significant milestone, I think this could be a foundation for sustained growth. My strategy is to maintain my positions, as I am optimistic about the economic developments that could drive further value in the coming years.

Is now the right time to buy into China? In my opinion, yes, it could be. The current high is not necessarily a peak but rather a stepping stone, especially if the broader market sentiment continues to build. I am encouraged by the historical context of the index's performance and the potential for undervalued sectors like technology and ETFs to gain traction. This aligns with my bullish outlook, and I would consider adding to my holdings at this stage.

Of course, market timing is always a challenge, and the discussions in chat groups reflect valid concerns about a possible end to the bull run. However, I interpret the lack of overwhelming euphoria as a sign that we are not yet in a bubble. My approach is to focus on the long-term trends rather than short-term fluctuations, which supports my decision to stay invested in Chinese assets.

In summary, I am excited about the prospects for Chinese markets, particularly with the Shanghai Composite Index's recent performance. The cautious sentiment and growing interest, combined with the potential for undervalued assets, strengthen my belief in a positive trajectory. I plan to hold and possibly increase my exposure to China ETFs or tech stocks, confident that this could be a rewarding move in the long run.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

@TigerStars  @Tiger_comments