Group 1 - The core conclusion indicates that the recent performance of previously oversupplied cyclical industries (such as photovoltaic, steel, and chemicals) may signal the entry of the bull market into its mid-term main upward wave [3][7][19] - In the two major bull markets (2013-2015 and 2019-2021), cyclical stocks significantly underperformed in the early stages but began to show strong performance in the later stages [3][8][10] - The steel sector is highlighted as the most representative cyclical industry due to its limited sub-sectors and high correlation with domestic macroeconomic demand [10][19] Group 2 - The report suggests that the main reason for the cyclical stocks' performance shift is related to valuation rather than earnings changes, as the fundamentals of cyclical stocks varied significantly in the two bull markets [3][13][19] - In the early stages of a bull market, only a few sectors see valuation increases, while in the later stages, most sectors experience valuation uplift, making cyclical stocks' valuation advantages more pronounced [3][13][19] - The report outlines two potential scenarios for the future: one where economic recovery is weak, leading to temporary excess returns for cyclical stocks, and another where rapid supply-side improvements and stable growth policies lead to a longer bullish trend for cyclical stocks [19][23][28] Group 3 - The report emphasizes that the current market conditions, characterized by low valuations and active policy support, resemble the early stages of previous bull markets, suggesting a comprehensive bull market is likely [23][28] - The suggested tactical approach includes increasing allocations to sectors with elastic performance, such as non-bank financials, AI applications, and cyclical stocks, which are expected to show elastic performance in the next six months [28][29] - Specific industry allocation recommendations include increasing exposure to non-bank financials, media, and cyclical sectors like chemicals and steel, which may benefit from stable supply policies and potential demand stabilization [29][30]