Group 1 - The core narrative of the current market is that the market ROE is reaching an inflection point, driven by the consensus on the stabilization of the profit cycle and the initiation of supply-side reforms [1][3] - The "anti-involution" policy is expected to accelerate supply-side reforms, while major infrastructure projects like the Yajiang Hydropower Station are opening up demand expansion space, reinforcing expectations for economic supply-demand optimization and ROE stabilization [1][3] - The trading narrative based on the ROE inflection point can be divided into two phases: the first phase is the inflection point trading, and the second phase is the space trading, which depends on the efficiency of supply policy implementation and the coordination of demand policy [1][3] Group 2 - The current "anti-involution" market has also followed a two-step rhythm, with the first phase of inflection point trading largely completed since July 1, 2025, when the Central Financial Committee proposed "governing disorderly competition" [3][4] - The rapid completion of the inflection point trading in this round is attributed to market learning effects and the current ample liquidity, which provides a basis for quick pricing [3][4] - The transition from inflection point trading to space trading is expected to experience a period of consolidation, as the market digests short-term profit-taking and re-establishes consensus on the space logic [3][4] Group 3 - The narrative logic and funding logic of dividend assets are facing challenges, as the improvement in economic expectations is likely to drive a reversal in interest rate expectations, undermining the narrative of perpetual dividends [4][6] - The core narrative of perpetual dividends assumes that the ten-year government bond yield will continue to decline or remain low, but this assumption is at risk of reversal as economic optimism rises [6][9] - The trading logic of dividend assets is closely tied to the movements of the ten-year government bond yield, with dividend asset pricing anchored to this yield [6][9] Group 4 - The current market is expected to present characteristics of "cyclical sectors taking the stage, with growth sectors performing," as the supply-demand structure continues to improve with the deepening of the anti-involution policy and the implementation of major infrastructure projects [9][10] - Industry allocation should focus on cyclical sectors related to major infrastructure, which have clear performance elasticity in the context of economic recovery [9][10] - Long-term growth directions such as the AI industry chain, humanoid robots, military industry, and innovative pharmaceuticals remain key investment themes [9][10]