Xin Lang Cai Jing·2025-11-07 02:45Core Viewpoint - The new economy represented by AI is supported by performance growth, interest rate cuts, and domestic and international industrial trends, but the technology sector appears crowded with high valuation premiums, leading to a more favorable outlook for the "old economy" sector going forward [1] Group 1: Reasons for Favoring Old Economy - There is a positive correlation between new and old economies; strong performance in the new economy typically boosts growth in the old economy [1] - The old economy sector currently has low valuations, low chip holdings, and low market expectations [1] - The bottom of the cycle has accumulated strong recovery potential [1] - From a funding perspective, new incremental funds such as insurance and foreign capital are expected to favor value styles next year [1] Group 2: Investment Strategy Recommendations - Investors are advised to balance value and growth in their allocations, utilizing methods such as dollar-cost averaging and phased entry [1] - Historically, funding allocations tend to focus on risk aversion towards the end of the year, with value styles being relatively dominant, making the period from year-end to the first quarter of the following year a favorable window for positioning [1]