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New Energy Bubble "war of words" escalates again Shennong Chen Yu asks "what if there is Bubble" Lu Yang refutes "pretending to be confused"
Jan 14,2021 14:58CST
translation
The content below was translated by Tencent automatically for reference.

In the past two days, Yang Dong, who was the first to set off a Bubble "war of words" of new energy, chose to be silent, but Chen Yu, who "retaliated" on Weibo and moments, persevered, and asked in a live broadcast on the 12th, "what if new energy vehicles have Bubble?"

On January 12, last Sunday, we issued the message, "how can we withdraw our troops from the war?" Chen Yu spoke again-in a drawing room program hosted by a media in Shenzhen, he said, "what if new energy cars have Bubble?" We should allow strategic emerging industries to have long-term Bubble! " Made a live broadcast.

In the face of the aggressiveness of many parties, the representatives of the air side did not show weakness. Recently, Lu Yang, founder of Botong assets, wrote that the blue-chip price ratio of high-valued consumption has reached the worst, and there are signs of accelerating the peak. "Why do people pretend to be confused?"

Shennong Chen Yu: what if there is Bubble? Emerging industries should have long-term Bubble!

Yang Dong of Ningquan assets was involved in a "war of words" because of a "thousand-word article" aimed at the new energy Bubble, but he chose to be silent. The return to the "friendly forces" in the air also made Chen Yu, who had been silent for several years, become popular again. In the past two days, there have been continuous live broadcasts and interviews by the major media.

After connecting to a live broadcast of a portal in Beijing on the afternoon of January 11, Chen Yu visited a media studio in Shenzhen on the afternoon of January 12. This live broadcast is often nearly an hour, Chen Yu once again with a grand narrative as the argument, firmly optimistic about new energy and other emerging industries.

"China is at a time when there is no great change in a century, and the registration system is a great change in the history of the Chinese stock market. Under the registration system, many companies are under great pressure, and the trading decline of tail companies is in a disadvantageous position, while for the best companies, the good performance of share prices has only just begun. " Chen Yu said.

What is meant by "Best Company"? Chen Yu believes that new energy, smart cars and photovoltaic industries are currently on the main track in the market and are one of the biggest tuyeres in the next decade. If our country wants to achieve great rejuvenation, we must achieve energy security and controllability.

Chen Yu further made it clear that the country will focus on some areas for a period of time. Investors are advised to pay attention to the leading companies in intelligent electric vehicles, artificial intelligence, new energy photovoltaic, biomedicine, semiconductors and military industries.

"some companies, such as Tencent, Apple, Google and so on, will rapidly expand themselves after they occupy a key core advantage. What we have to do is to keep a close eye on these tracks, the ultimate meaning of investment is to invest in those great entrepreneurs, and then promote the development of society. " Chen Yu said.

In Chen Yu's view, any company has its own reasonable pricing, but when it comes to the geometric growth of some companies, many valuation evaluations are ineffective. For example, the valuation of BAT, which was highly valued more than a decade ago, seems reasonable at that time.

In September last year, Baidu Chairman Robin Li published a new book, Intelligent economy, which showed Baidu's strategic thinking and layout in the field of artificial intelligence for the first time in a panoramic manner. Li Yanhong believes that the next decade will be the era of intelligent economy, which has three remarkable characteristics: the first is the intelligence of human-computer interaction, the second is the intelligence of infrastructure, and the third is the intelligence of industry.

As for the popular liquor sector, Chen Yu believes that the current trend of holding together in the liquor sector is too concentrated, regardless of the company's performance of blind investment is still risky. The trend of high-end wine replacing low-end wine is not decreasing, and some companies still have good investment opportunities.

"it's not anger, it's a different investment system." With regard to the recent media attention to the "war of words" between Chen Yu and Yang Dong, a person in charge of Shennong Investment responded to the Financial Associated Press reporter that although everyone has different views, they all hope that A-shares will get better and better.

Botong Luyang: pretending to be confused? New energy vehicles show signs of speeding up to the top!

"this outrageous phenomenon is unprecedented in history!" In July this year, at a time when the market was in full swing, the founder of Porto Investment warned of the risk of high valuations. Half a year later, his original prediction was only half right, although the index has been adjusted, but the high valuation has improved by leaps and bounds.

"from the A-share market, the Shanghai and Shenzhen 300 and the gem refer to signs of speeding up to the top under the leadership of the leading companies of liquor, medicine and new energy vehicles." In the weekly investment notes, Lu Yang, founder of Botong Investment, judged.

The recent trend of individual stocks is not active, but the leading stocks in the overvalued sector have risen hugely. For example, on January 4, the gem index rose 3.7%, of which the Ningde era contributed more than 50%, which reminded Lu Yang of a scene in late 2007. So since the beginning of last week, they have appropriately reduced some positions, especially those with excessive short-term gains.

Why is there such a big Bubble in this wave of consumer stocks? Lu Yang believes that the rise of Bubble is a situation in which value investment gradually gained the upper hand after 2016, which should have been reasonable, but everything has gone too far-at present, the blue-chip price ratio of high-valued consumption is at its worst.

If only the performance-to-price ratio is bad is not terrible, time is the antidote; but the biggest problem at present is that the leading stocks of food, medicine and Xinneng cars are all large market capitalization companies, even heavyweights. Half of the top 100 A-share companies are these companies. Maotai, Haitian, Wuliangye and Golden Dragon Fish add up to the market capitalization of the four major industrial, agricultural, China and Construction banks!

Why do people pretend to be confused? At present, China will not have technology companies such as Google, Apple and Amazon in the short term, nor consumer companies such as Wal-Mart, Coca-Cola, McDonald's, Costco and Nike.

"when our funds identify with the future of consumer stocks, foreigners cash in high positions, go short and escape from the top through the futures index, and wait for falling to continue to buy back, is this process very familiar?" Lu Yang said that if a large number of high-valued stocks increase their weighting and increase the space for short selling in the index, and the gem crash in 2015 will happen again, who will vent to the investors who are losing money?

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