Core Viewpoint - The article discusses the recent performance of the banking index, its historical context, and the current valuation, suggesting potential strategies for profit-taking as the index reaches a relatively high valuation level [6][18][21]. Group 1: Market Performance - The market experienced a slight decline after three consecutive days of increase, maintaining a rating of 4.9 stars [1]. - Both large-cap and small-cap stocks saw a decrease, while the banking index showed strength and reached a historical high [2][3][6]. - The value style, including dividend stocks, exhibited relatively small fluctuations during this period [4]. Group 2: Historical Context of Banking Index - The banking index has had strong performance in recent years, but historically, it has also faced periods of underperformance, leading to negative perceptions such as "three fools" and "big rotten smell" [6][8]. - From 2014 to 2015, small-cap stocks were in a bull market while large-cap stocks, including banks, were underperforming [7]. - The period from 2016 to 2017 saw a shift where large-cap stocks began to perform better as small-cap stocks faced declines due to valuation bubbles [8]. Group 3: Current Valuation and Profit-Taking Strategies - The banking index has seen significant growth in recent years, driven by both valuation increases and growth in earnings and net assets, resulting in a "double effect" [19]. - Currently, the banking index's valuation is considered normal to slightly high, with expectations that upcoming financial reports may lead to a decrease in perceived valuation [21]. - For profit-taking, two strategies are suggested: selling based on high valuation or achieving a satisfactory return, with recommendations for gradual selling [23]. Group 4: Dividend Indices and Value Style - The article differentiates between the banking index and dividend indices, noting that the banking index is weighted by market capitalization while dividend indices are weighted by dividend yield [10][11]. - Despite differences, both categories fall under the broader value style, which has shown strength from 2022 to 2024 [14][15].