Core Viewpoint - The article emphasizes the importance of asset allocation and long-term investment strategies for achieving financial freedom, suggesting that individuals should invest a significant portion of their income in the stock market over time to build wealth. Group 1: Market Trends - Asian stock markets are experiencing fluctuations, with Hong Kong showing upward movement despite other markets being volatile [1] - The Hang Seng Index has recently rebounded after a period of underperformance, indicating a search for undervalued assets by investors [3] Group 2: Investment Strategy - A hypothetical scenario illustrates that starting to invest 20% of an annual salary of 200,000 with a 2% annual salary increase and an 8% annual return can lead to significant wealth accumulation by age 50 [4][5] - By age 50, the stock asset returns can surpass annual income, providing a sense of financial freedom and the possibility of early retirement [7] - Increasing the investment portion to 60% of the salary can lead to even greater returns, with stock assets potentially reaching 35 million by retirement age [12] Group 3: Historical Returns - Historical data suggests that global stock markets have provided an average annual return of around 8% over the past 200 years, with some periods showing even higher returns [13] - Specific data from 2015 indicates that funds established at market highs have still yielded reasonable returns over a decade, reinforcing the idea that long-term investment can mitigate the effects of market timing [14][16] Group 4: Investment Guidelines - The article concludes that to achieve relative financial freedom, individuals should consistently invest 20% to 60% of their income and maintain a long-term holding strategy, avoiding high market entry points [13][16]

Core Viewpoint - The article discusses the dynamics of market participation during bull markets, highlighting that inexperienced retail investors often end up as the "greater fools" who buy into overvalued stocks, while seasoned investors tend to manage their risks more effectively [1][2][3]. Group 1: Market Dynamics - During bull markets, there is a significant disparity in profitability among different investor categories, with larger funds generally achieving higher returns [2]. - Small investors (0-500,000 yuan) make up 85% of the market but average a loss of 32%, while large investors (over 10 million yuan) represent only 0.5% and average a return of 33% [2]. - The last buyers in a bull market are often those who are least informed and most financially constrained, leading to a situation where they are left holding the bag when the market corrects [2]. Group 2: Investor Behavior - New retail investors, often referred to as "little white investors," tend to enter the market during euphoric periods, which is a risky strategy [4][7]. - Many retail investors lack the discipline to exit positions during downturns, leading them to become "value investors" after experiencing significant losses [7][8]. - The article emphasizes the importance of not relying solely on bull markets for investment success, suggesting that investors should develop strategies to profit in various market conditions [8][9]. Group 3: Institutional Influence - Institutions often leverage retail investor capital to boost their own performance, creating a cycle where retail investors buy into high-flying stocks that institutions are offloading [10][11]. - The article notes that retail investors are more likely to invest in index funds that include high-profile stocks, which can lead to inflated valuations [10].