Core Viewpoint - The market sentiment has shifted positively, with the Shanghai Composite Index reaching a 10-year high of 3,746 points in August, leading to discussions about a potential bull market [3]. Group 1: Market Performance - The Shanghai Composite Index was relatively stable in June but surged in July and August, breaking through significant resistance levels [3]. - The current market valuation, measured by rolling price-to-earnings (P/E) ratios, indicates that major indices like the CSI 300 and Hang Seng Index are at historical mid-levels, while the ChiNext Index is at a historical low [9]. Group 2: Investor Behavior - Experiments show that investors tend to exhibit risk-averse behavior when holding profitable stocks, often selling to secure gains, while showing risk-seeking behavior with losing stocks, hoping for recovery [6][8]. - The tendency to sell winning stocks while holding onto losing ones is likened to "pulling out flowers while watering weeds," highlighting a common behavioral bias among investors [14]. Group 3: Long-term Investment Strategy - Historical data indicates that despite the Shanghai Composite Index declining by 38% over 18 years, nearly 30% of stocks listed since 2007 have been profitable, with 185 stocks yielding over 50% returns [15]. - The importance of diversified investment strategies is emphasized, suggesting that spreading investments across various asset classes can mitigate risks and enhance resilience [15][16].