In the field of stock investment, whether in the US or Hong Kong stock markets, investors are often confused and searching for trading opportunities. However, in fact, there is no absolutely accurate universal trading time.
For investors with a long-term strategic vision, whether it is the US stock market or the Hong Kong stock market, there are potential opportunities for successful investment in any market environment. Excessive obsession with accurately grasping market opportunities often leads to missing many opportunities and difficulty in obtaining ideal returns. Compared with worrying about when to enter the market, the more critical issue is to identify undervalued stocks in these two markets.
Is it suitable to invest in stocks now?
If investors are looking at financial planning for the next five, ten or even longer years, now is undoubtedly a good time to get involved in the US and Hong Kong stock markets. Although the economic situation is uncertain and volatile, the market is naturally forward-looking.
Stock value is essentially anchored to expected future returns.
Take the US stock market as an example. Although its economic cycle fluctuates frequently, in the long run, corporate profits are on an upward trend. For example, driven by innovation, technology giants continue to expand their business boundaries and improve their profitability, supporting the long-term rise in stock prices. The same is true for the Hong Kong stock market. Many high-quality mainland companies have gone public in Hong Kong. With the huge mainland market demand and their own growth potential, they have shown great value in the long-term investment perspective. Even during the economic recession, there is still no shortage of stocks with investment value in the US and Hong Kong stock markets.
Continuously and steadily investing funds and downplaying short-term market fluctuations is an effective strategy for long-term investment in US and Hong Kong stocks. In the process of long-term investment, it is inevitable to encounter market adjustments or crashes. In this case, if the investor's financial situation allows, it is an opportunity to increase investment. Of course, given the unpredictability of the market, it is extremely difficult to make accurate plans in advance to deal with large market fluctuations. If the market trend can be accurately predicted, extreme situations such as crashes will not occur.
Is it better to buy stocks when they fall?
In the stock market , when overall market valuations climb, it does become more difficult to find quality buying opportunities. Stocks that are undervalued relative to their fundamentals are becoming more scarce, but they are by no means extinct.
When investors think about whether it is suitable to invest in stocks now, the key lies in whether they can find securities that are undervalued by the market. During the decline of the market, there may be a large number of opportunities to buy undervalued company stocks. For example, during the adjustment of the US technology sector, some companies with core technological advantages but whose stock prices have fallen in the short term due to market sentiment are often rare investment targets . In the Hong Kong stock market, high-quality companies in the financial, real estate and other industries whose stock prices have fallen due to the impact of the global economic situation may also provide very attractive investment opportunities at this time.
Just like Buffett's philosophy of focusing on finding undervalued securities, in stock investment, the key is not to worry about whether to invest at the moment, but to accurately lock in stocks that are worth investing in. As long as the stock valuation is reasonable, it has investment value. Even if the stock price goes down in the short term, as long as the investment logic is solid, you should stick to it and continue to examine the effectiveness of the investment basis.
How to determine a good buying opportunity for stocks ?
In the stock market , even if you buy stocks with strong long-term growth potential at the peak of a bull market, it is not a fatal mistake. Take the growth-oriented technology stocks in the US stock market as an example. Although they may fall sharply during market adjustments or crashes, they can often rebound strongly in the future with their innovation advantages and market recovery, becoming an important driving force for growth.
Market turmoil caused by economic events often brings opportunities to companies that focus on long-term development. For example, the adjustment of the Federal Reserve's monetary policy or the change of Hong Kong's economic policy may have a short-term impact on the market, but the stock prices of companies whose management teams are good at grasping long-term growth opportunities are expected to rebound strongly after the fluctuations. When the stock price has a small correction, investors do not need to panic and sell.
In fact, in most cases, this is just a normal adjustment (a drop of more than 10% but less than 20%), not a crash (a drop of more than 20%). Adjustments in the US and Hong Kong stock markets occur from time to time. For example, the Hong Kong stock market may adjust several times a year due to the influence of international capital flows. When the stock price is undervalued at a certain stage, it is often a good time to buy.
Analysis of intraday, weekly and monthly time nodes of stock trading
On a normal trading day, the trading hours for U.S. stocks are from 9:30 a.m. to 4:00 p.m. Eastern Time, and the trading hours for Hong Kong stocks are from 9:30 a.m. to 4:00 p.m. Hong Kong Time. For investors who plan to hold U.S. or Hong Kong stocks for a long time, the specific trading hours of the day have little impact on investment returns.
Day traders seek to profit from price fluctuations. In the U.S. stock market, it is often heard that the first hour of trading (9:30-10:30 a.m.) and the last hour of trading (3-4 p.m. ) are highly popular due to high trading activity and large price fluctuations. The Hong Kong stock market also has relatively intensive trading during the opening and closing hours.
However, it should be clear that day trading and long-term investment are completely different strategies. Investment focuses on the fundamentals of the company and the long-term value growth. If the company performs well, investors will receive generous returns; while day trading involves frequent buying and selling within the same day, does not rely on the analysis of the company's fundamentals, and it is difficult to make a profit. In comparison, it is more feasible to become an excellent long-term investor.
In terms of weekly trading time, there were rumors that U.S. stocks fell sharply on Monday due to the accumulation of negative news over the weekend and the impact of investor sentiment, but this phenomenon has become less significant in recent years. According to relevant research, since a specific time point, the performance of U.S. stocks on Monday is not significantly different from that of other trading days. Although the Hong Kong stock market is affected by international market linkage and local factors, there is no fixed rule of the best trading days within the week.
In terms of monthly trading hours, there are also many theories circulating in the US and Hong Kong stock markets. For example, the U.S. stock market has a "January effect", in which some market sectors perform outstandingly at the beginning of the year due to factors such as the reallocation of investors' funds; the Hong Kong stock market is affected by the earnings season, holidays, etc., and different months have different performance characteristics. Some investors will adjust their U.S. or Hong Kong stock portfolios at the end of the year for tax planning and other purposes, such as selling stocks to lock in gains or losses. However, it is not wise to hold cash for a long time and wait for the so-called best months to invest. Otherwise, it is easy to miss the market's rising trend. income to come.
Why You Shouldn’t Over-Timing the Market
Throughout the history of the stock market , many outstanding investors, such as Buffett, have disagreed with the precise grasp of market timing. If these investment masters do not advocate it, ordinary investors should be more cautious.
According to statistics, in the US stock market, if investors put all their funds into the S&P 500 index fund in a certain period, they can get a certain average return rate in the long run. However, if they miss several trading days with the largest increase during the period, the return will shrink significantly. The same is true for the Hong Kong stock market. For example, in the Hang Seng Index investment, frequent timing operations in an attempt to avoid market adjustments often cause investors to miss the key rising stage, and the return is far lower than long-term stable holding.
In general, the right time for stock trading depends not only on the overall market environment, but also closely on factors such as short-term economic data, monetary policy, seasonal fluctuations, and earnings season . Investors should flexibly adjust their trading strategies based on different time dimensions, such as one day, one week, one month, and one year, to seize the best buying and selling opportunities and maximize investment returns.
