Core Viewpoint - The A-share market is currently experiencing significant fluctuations, with the Shanghai Composite Index dropping 3.9% in the penultimate week of November, marking the largest weekly decline of the year, raising concerns among investors about the sustainability of the bull market [1]. Market Phases - The bull market typically progresses through three phases: 1. **Policy Bottom**: Characterized by the government easing monetary policy and introducing favorable measures, despite poor economic data and corporate earnings. This phase sees high volatility as the market reacts to policy changes without fundamental support [2]. 2. **Fundamental Bottom**: In this phase, the effects of policies begin to positively impact the real economy, leading to improved corporate earnings and a simultaneous rise in valuations, resulting in a strong upward market trend [2]. 3. **Sentiment Top**: This phase occurs when economic growth slows, corporate earnings stagnate, and policies may tighten, yet market enthusiasm drives valuations to bubble levels [2]. Current Market Stage - The current market is likely at the end of the first phase and the beginning of the second phase, indicated by increasing activity in M1 and a narrowing year-on-year decline in PPI, which are positive signals. However, the improvement in the real economy is not yet comprehensive, with only "point-like" improvements observed in certain sectors like technology, while traditional industries and real estate remain weak [3]. - The upward potential in the second phase is significant, and despite the index reaching 3,800 points, the overall market performance this year has been strong, with positive expectations for the next year [3]. Investment Opportunities - The market has shown significant divergence this year, with sectors related to technology and external demand performing well, while those tied to consumption and domestic demand have lagged. This disparity in investment returns highlights the importance of sector selection [3]. - Investors are encouraged to either continuously learn and adapt to market changes or to focus on their areas of expertise, as both strategies can yield substantial returns over time [3][4].