Core Viewpoint - The article discusses the "Screw Star Rating" system, which helps investors assess market valuation and identify suitable investment strategies based on different star ratings. It emphasizes the importance of understanding when to buy or sell and how to manage volatility risk effectively [3][4][5]. Group 1: Screw Star Rating System - The "Screw Star Rating" is used to evaluate the overall market valuation, updated daily on the public account [3]. - The star ratings range from 1 to 5.9, with 5-5.9 indicating the best investment phase for stocks and funds, while 1-1.9 represents a bubble phase [5][14]. - A new mini-program allows users to check the latest star ratings in real-time, updated every minute [6]. Group 2: Market Performance Since 2022 - The article provides a comparison of the performance of the CSI All Share Index and its total return index with the Screw Star Ratings since early 2022, showing a correlation between star ratings and market movements [8]. Group 3: Investment Strategies by Star Rating - Different investment combinations are recommended for various star ratings, with specific strategies tailored to each rating level [10]. - For a 5-5.9 star rating, the recommended investment combinations include "Active Selection" and "Index Enhancement," focusing on a high proportion of stocks [24]. - In a 4-4.9 star rating, some undervalued stocks remain, but the investment amount should be significantly reduced compared to the 5-star phase [29][30]. Group 4: Characteristics of Each Star Rating - In the 5-5.9 star phase, there are many undervalued stocks, limited downside risk, and significant upside potential, despite prevailing pessimism among investors [16][19]. - The 4-4.9 star phase sees a gradual reduction in undervalued stocks, with some still available for investment [26]. - The 3-3.9 star phase indicates that most stocks are either fairly valued or overvalued, presenting opportunities for profit-taking [37][40]. Group 5: Risk Management and Asset Allocation - The article suggests controlling stock asset proportions based on age, recommending not to exceed "100 minus age" in stock investments during the 4-star phase [33]. - It emphasizes the importance of managing volatility risk, especially during transitions from 4-star to bear market phases [35]. - Strategies for risk control include dollar-cost averaging, diversified asset allocation, and maintaining a balanced portfolio [38].

Core Viewpoint - The article introduces the new automatic profit-taking feature, which allows users to set up automatic conversions of their investment portfolios when certain market conditions are met, enhancing convenience and efficiency in managing investments [1][9]. Summary by Sections Automatic Profit-Taking Function - The automatic profit-taking feature has been launched to facilitate users in managing their investments more easily [1]. - Users can enable this feature to automatically execute profit-taking transactions when the market reaches specific valuation levels [9]. How Investment Combinations Take Profit - Investment combinations, such as Active Selection and Index Enhancement, utilize two main methods for profit-taking: 1. **Automatic Rebalancing**: When certain assets are overvalued and others are undervalued, the combination will automatically rebalance by taking profits from overvalued assets and increasing positions in undervalued ones. For example, in early 2021, the Active Selection combination achieved a profit-taking return of 120% by selling growth-style funds and reinvesting in undervalued deep value funds [4]. 2. **Overall Market Profit-Taking**: If the market is generally overvalued, the combination will signal a "profit-taking" action, prompting users to gradually convert their holdings into more stable investment options [5][7]. Specific Operations - Upon receiving a "profit-taking" signal, users have two options: 1. **Manual Profit-Taking**: Users can manually execute the conversion transactions upon receiving the signal [9]. 2. **Automatic Profit-Taking**: Users can set up the automatic feature to execute conversions without manual intervention, ensuring timely profit-taking [9]. Benefits of Automatic Profit-Taking - The automatic profit-taking feature offers three main advantages: 1. **Convenience**: Users only need to set it up once, and future profit-taking actions will be executed automatically [9]. 2. **Timeliness**: The feature ensures that users do not miss profit-taking opportunities as it responds promptly to market signals [9]. 3. **Discipline**: It adheres strictly to the profit-taking plan, ensuring that overvalued assets are sold as planned [9]. Activation and Management of the Feature - Users can activate the automatic profit-taking feature at any time, and it will only trigger transactions when the market conditions warrant it [13]. - The feature does not affect the ability to redeem current holdings, allowing for flexible management of investments [14]. - There are no additional fees for using the automatic profit-taking feature, although standard redemption fees may apply based on the fund's rules [16].

Core Viewpoint - The article discusses the significant recovery of A-shares and Hong Kong stocks over the past year, highlighting the shift from extreme undervaluation to a more balanced valuation, driven primarily by improved liquidity and some signs of fundamental recovery. Group 1: Market Performance - A-shares and Hong Kong stocks have shown strong performance recently, with overall increases noted [1][6] - Small-cap stocks have outperformed larger stocks in the recent rally [3] - The technology sector, particularly in Hong Kong, has seen substantial gains, with tech stocks rising over 2% [7] Group 2: Yearly Comparison - A year ago, both A-shares and Hong Kong stocks were at a historical low valuation of approximately 5.9 stars [8][14] - Over the past year, A-shares and Hong Kong stocks have risen significantly, with the Hang Seng Index increasing by 43% and tech stocks up by 66% [11] - The global stock market has seen an overall increase of 17% during the same period [10] Group 3: Valuation Insights - The current valuation of A-shares is around 4.2 stars, indicating a recovery from the previous year's extreme undervaluation [9][21] - A-shares are still trading at a valuation approximately 50% lower than the global market average [16] - The article notes that the valuation gap has narrowed to about 10% compared to global averages, suggesting less room for further valuation expansion [31] Group 4: Market Drivers - The recent market rally has been primarily driven by improved liquidity rather than strong fundamental growth [21] - A-shares have shown signs of profit recovery, with earnings growth for listed companies improving, albeit still below historical averages [27][28] - The article emphasizes that sustained market growth will depend on continued earnings growth rather than just valuation recovery [37] Group 5: Future Outlook - The potential for further market gains exists if earnings continue to grow alongside reasonable valuations [41] - The article suggests that if the Federal Reserve maintains a low-interest-rate environment, it could provide additional support for market growth [41] - The focus on active selection and enhanced index strategies is highlighted as a way to navigate the post-undervaluation phase [43]

Group 1 - The article discusses the concept of dollar-cost averaging in undervalued markets, suggesting that consistent investment during these periods can lower the average cost and enhance returns when the market improves [2] - It explains the structure of enhanced index funds, which typically invest about 80% in index components and 20% in enhancement operations, allowing them to follow index trends while also considering index valuations [3] - The challenges of actively managed funds are highlighted, particularly the lack of transparency regarding current holdings, as only quarterly reports reveal the stocks held [4] Group 2 - Several strategies for evaluating active funds are presented, including assessing the investment style or industry focus of the fund manager, such as value-oriented funds referencing value indices [5][6] - The article notes that active funds often have performance benchmarks, which may change to reflect the manager's actual investment direction, impacting their compensation if they underperform [7] - It suggests that constructing a diversified portfolio of actively managed funds across different styles and sectors can simplify valuation compared to evaluating individual active funds [8][9]

Market Overview - The overall market has experienced a decline, closing at 4.3 stars [1] - Large, medium, and small-cap stocks have all decreased, with small-cap stocks showing greater volatility [2] - The STAR Market and securities indices have seen significant declines [3] - The STAR 50 index rose to an overvalued position in the past two weeks before experiencing a pullback [4][5] - Consumer sectors have also shown signs of decline [6] - Hong Kong stocks have exhibited smaller fluctuations compared to A-shares, with Hong Kong dividends remaining relatively strong [7][8] - Recent global stock market fluctuations have indirectly impacted both A-shares and Hong Kong stocks [9] Global Market Influence - Last week, global stock markets saw a downturn, particularly in Europe, while A-shares managed to rise [10] - This week, global markets continued to decline, with Hong Kong stocks showing slight gains and A-shares experiencing minor drops [11] - Fluctuations in overseas markets have affected the performance of RMB assets, although RMB assets have shown less volatility due to valuation advantages [12][13] Investment Strategies - For index funds, it is easier to determine if a stock or fund is overvalued or undervalued by referring to daily published index valuation tables [14][15] - The valuation table categorizes indices into green (undervalued), yellow (fairly valued), and red (overvalued) [17][18] - Being in the undervalued range does not imply that the index will not experience fluctuations [19][20] - Regular investments in undervalued areas can help average down costs, leading to potential gains when market conditions improve [23] Fund Management Insights - Active funds present more challenges in valuation as fund managers do not disclose current holdings, only showing them in quarterly reports [28] - Investors can assess active funds by understanding the manager's investment style or industry focus [29][30] - Active funds often have performance benchmarks, which may change to reflect the manager's actual investment direction [36][37] - A diversified active fund portfolio can reference overall market valuations for investment decisions [40][41] Tools and Resources - The "Today’s Star" mini-program has expanded its percentile valuation table for indices, allowing users to purchase corresponding index funds [43] - Users can filter by categories such as broad-based, strategy, industry, theme, and global indices for targeted investments [43] Investor Mindset - Mature investors understand the importance of establishing a suitable investment framework, recognizing that market fluctuations are unpredictable [45] - Continuous learning and rational decision-making are essential to mitigate emotional impacts on investments, with a stable mindset being key to achieving sustained returns [45]