Core Viewpoint - The article discusses the fluctuations in the stock market, particularly highlighting the unusual drop to a 5.9-star rating in 2024 due to significant market events such as the liquidation of derivatives and private equity, followed by a rapid rebound [2][3]. Group 1: Market Cycles - The stock market is influenced by three main cycles: 1. **Fundamental Cycle**: This refers to the growth in earnings of listed companies, which can vary significantly from year to year. In 2024, the market is expected to be sluggish due to a year-on-year decline in corporate earnings [4]. 2. **Liquidity Cycle**: The availability of capital in the market, which has increased due to lower interest rates in both USD and RMB over the past two years, enhancing liquidity and potentially boosting market valuations [6]. 3. **Sentiment Cycle**: Market sentiment can shift dramatically during periods of significant price movements, indicating that market cycles can swing from one extreme to another [6][7]. Group 2: Market Outlook - Despite the current bearish trends, there is an expectation for future bullish markets, as the stock market inherently experiences cycles of bull and bear phases [3][7].