Core Insights - The average return rate of billion-level private equity firms reached 28.8% in the first three quarters, indicating a competitive market environment that attracts retail investors [2] - The emergence of five new firms, with a balanced representation of quantitative and subjective strategies, suggests that there are no eternal strategies in the market, only ongoing competition [2] - The market is characterized by information asymmetry, where the behavior of funds is more telling than price movements, highlighting the importance of understanding institutional actions [14] Group 1 - The current market resembles a humid and stagnant environment, where institutions are playing a "time for space" game, making it difficult for retail investors to interpret market movements accurately [6] - The concept of "institutional inventory" reveals that just because funds are present does not mean they are actively engaged, similar to gym-goers who check in but do not work out [10] - The reliance on traditional technical analysis is becoming less effective in a market dominated by algorithms and strategies, necessitating a shift in how market observations are made [14][15] Group 2 - The two major illusions affecting investors are the belief that "my stock will definitely rise" and that "adjustments are opportunities," which can lead to significant losses during market fluctuations [5] - The market's nature is such that it does not distribute gains evenly, as evidenced by stocks like Guangju Energy, which lost 60% of its gains during a bullish phase [2] - The behavior of institutional investors, such as the significant holdings by Central Huijin and China Securities Finance in Moutai, did not prevent the stock price from declining, illustrating the unpredictability of market reactions [10]