Core Viewpoint - The report identifies key observation indicators to monitor during a bull market, characterized by an index increase of over 20%. It emphasizes macroeconomic metrics, trading activity, capital inflow, and asset valuation comparisons as critical areas of focus [1]. Group 1: Macroeconomic Indicators - Indicator 1: The ratio of market capitalization to GDP is currently at 85.6%, with a change of 18.5% from the start to the end of the current market cycle, indicating room for improvement compared to historical highs [3][14]. - Indicator 2: The ratio of market capitalization to household deposits stands at 73.2%, with a change of 15.7% during the current cycle, suggesting potential for further growth [4][17]. Group 2: Trading Activity - Indicator 3: Trading volume has increased from 1.6 trillion to a peak of 3.19 trillion, indicating a potential for further expansion, with a maximum turnover rate of 2.76%, up by 0.99% from the starting point [4][21]. - Indicator 4: Trading congestion reached a maximum of 39.3%, up from 27.7%, reflecting a significant increase in trading activity [4][24]. - Indicator 5: The current drawdown risk is low at 5.9%, compared to over 10% in previous cycles, with a favorable profit-loss ratio of 2.8 [5][26]. Group 3: Capital Inflow - Indicator 6: Margin financing balance is at 2.24 trillion, a 21% increase from the starting point, with a current market value ratio of 1.91%, indicating room for growth compared to previous cycles [6][29]. - Indicator 7: The number of new accounts opened has seen limited growth, with a ratio of 1.0 compared to the starting month, suggesting potential for future increases [7][31]. - Indicator 8: The issuance of equity funds has a ratio of 1.1 compared to the starting month, which is relatively low compared to previous cycles [8][33]. Group 4: Asset Valuation Comparison - Indicator 9: The equity risk premium (ERP) has decreased by 1.58% during the current cycle, which is a lower decline compared to historical averages [8][35]. - Indicator 10: The difference between equity yields and bond yields has decreased by 1.08%, but remains at a relatively high level, indicating ongoing attractiveness of equities [8][38].