The new energy sector, which was once the strongest track in 2021, is one of the sectors with obvious adjustment range in the A-share market this year, but the "blood return" has been obvious since the end of April. Data show that as of May 20, the CSI new energy index has increased by more than 30% to 30.52% since April 27.
What are the main reasons for the recent strong performance of the new energy sector? What should we think of the current market? Has the new energy sector ushered in the boarding time? How should ordinary investors lay out their funds? In this regard, the reporter of China fund daily interviewed a number of excellent fund managers in the field of new energy, including:
GF growth investment department, Zheng chengran,
Cui Chenlong, executive investment director and fund manager of Qianhai open source fund,
harvest fund growth style investment director Yao Zhipeng,
HSBC Jinxin investment director and proposed fund manager of times pioneer fund, Lu Bin,
China Merchants Anrun fund manager Ren Lina,
sun haozhong, fund manager of CITIC Prudential,
ChuangJin Hexin new energy vehicle fund manager Cao Chunlin
These people believe that the sharp decline in the new energy sector in the early stage, good fundamentals and the resumption of work and production after the improvement of the epidemic have become the reasons for the recent performance of the new energy sector. Many people are optimistic about the future market of the new energy sector and believe that the current valuation of this sector is at a reasonably low level with obvious cost performance. Investors should pay attention to the large fluctuation of this sector in the layout of new energy field through funds, and it is best to use fixed investment layout.
multiple factors triggered the rebound of new energy
Journalist: data shows that the data shows that the end of the end of a 5-month 2 , especially the auto parts and lithium battery sector continued to be active. What is the logic of the recent strong rebound of the new energy sector
Zheng chengran: understand the recent rebound logic of the new energy sector, on the premise of analyzing the reasons for the decline since this year. Since the beginning of the year, affected by various factors such as changes in the external environment and repeated outbreaks in China, except for individual industries such as real estate, the vast majority of A-share sectors have experienced a round of significant adjustment; In this process, the new energy sector has risen more in the past. Some factors of trading chips will make the new energy sector bear the brunt of the decline.
Accordingly, the recent rebound will be relatively strong. In terms of sub sectors, the rebound of photovoltaic sector mainly comes from solid fundamentals. On the one hand, the industry itself is less affected by the internal and external environment, and the demand abroad, especially in Europe, is still strong; On the other hand, the impact on China's industrial chain is not too great, and the performance expectation is relatively clear. After the factors suppressing valuation are alleviated, the natural rebound will be greater.
The rebound of the electric vehicle industry chain is mainly due to the market's expectation of repair after the improvement of the epidemic prevention and control situation, as well as the possible subsequent stimulus policies. The rebound logic in these two areas is different.
Cui Chenlong: in the early stage, the market was impacted by many events, such as the conflict between Russia and Ukraine, the interest rate increase of the Federal Reserve, the Shanghai epidemic and so on. Among them, the new energy vehicle sector had a relatively large range in the last round of adjustment due to the short-term substantive impact on the supply chain. At present, the epidemic situation in Shanghai has been controllable, and the resumption of work and production is proceeding rapidly. The market has strong confidence in the recovery of the whole new energy vehicle supply chain. Therefore, the recent rebound has quickly repaired some of the previous decline.
Yao Zhipeng: first of all, the overall valuation of this sector is low, and the current valuation of important leading companies may be in a very low position in history, which is roughly comparable to the level in 2018. In this state, no matter any negative news appears, the space for the sector to continue down will be relatively limited; At the same time, once there is good news, the sector may have a significant upward trend.
Secondly, with the continuous progress of epidemic prevention and control recently, a good solution has been found in the market. Specifically, the normalized nucleic acid detection policy implemented in many places is a better model that can control the economic impact and ensure the stable operation of economy, supply chain and logistics. Combined with the expectation of the resumption of production of some leading enterprises of new energy, the whole sector rebounded significantly. Finally, in order to promote the consumption of the automobile market, the state has promulgated many regulations to stimulate consumption, among which the most exciting is the subsidy policy for automobile going to the countryside, which is also conducive to the rise of the new energy vehicle sector.
Lu Bin: I think there are two main reasons.
First, after the adjustment in the first four months, especially from March to April, the valuation of some high-quality growth stocks has returned to a relatively low historical level. Even after we make performance adjustments according to relatively pessimistic expectations, their valuations are still attractive.
Secondly, the epidemic from March to April made the market have relatively pessimistic expectations for the performance of 2022, which also led to the double killing of profitability and valuation of many companies. However, after investigation, we found that according to the feedback of many enterprises and subdivided industries, the impact of the epidemic may not be as limited as you think. The market demand in the medium and short term will certainly be affected, but in the long run, the development trend of the whole new energy industry has not changed.
Therefore, if we go back to the dimension of 1-2 years, some high-quality growth stocks represented by new energy have actually shown better investment opportunities.
Ren Linna: take electric vehicles as an example. Due to the impact of the epidemic, the stock market responded fully to pessimistic expectations in the early stage. With the resumption of work and production in succession, the industry has a certain marginal improvement in the short term, and the market is also responding to some support policy expectations. However, we believe that the key is that the long-term growth logic of high-quality supply promoting the improvement of penetration has not been destroyed. In the early decline process, the long-term value of some high-quality enterprises is more significant.
Taking photovoltaic as an example, the industry fundamentals are strong, but since this year, it has also been disturbed by various noises, and the sector is in a "power storage" state in the early stage. However, the market has gradually realized the strong fundamentals of photovoltaic, and we believe that the recent rebound is also a reflection of this deepening understanding.
The pattern of some segments of the new energy vehicle industry chain is still changing, so it is more emphasized to select individual stocks.
sun haozhong: the recent rebound of new energy mainly includes new energy vehicles and photovoltaic, but the rebound factors of the two are slightly different. The transaction of new energy vehicles is more due to the expectation of resumption of work and production in Shanghai, because the automobile industry chain in the Yangtze River Delta centered on Shanghai was seriously damaged in the early stage, which is the main factor for the recent rebound of new energy vehicles.
For photovoltaic, it is mainly against the background of rising energy costs, especially the rapid growth of demand in Europe. Another big background is that U.S. inflation fell in April compared with March, and the interest rate of U.S. 10-year Treasury bonds began to fall, which eliminated the repressive factors on the valuation of the whole growth stocks in stages, and then superimposed with the resumption of work and production of new energy vehicles just mentioned, and the high growth of photovoltaic demand in Europe, which can be said to be a rebound caused by the superposition of factors at the macro level and the industry level.
Cao Chunlin: new energy is one of the few industries in the market that can maintain rapid growth. The huge growth space and high growth rate make new energy the focus of the market. Of course, any industry may experience short-term fluctuations in the development process. For example, the epidemic in Shanghai since the end of March has had a great impact on China's manufacturing industry, especially the automobile industry chain.
The epidemic has caused a great negative impact on China's macroeconomic data and the actual automobile production and sales data, and there have been great fluctuations in the stock market, including great adjustments in the new energy sector. Accordingly, driven by the improvement of the epidemic situation in Shanghai and the loose policies of the state, the new energy sector has ushered in a relatively strong rebound.
new energy sector 2022 valuation
has been reduced to a reasonably low level
China Fund News reporter: since this year, Contemporary Amperex Technology Co.Limited(300750) and new energy sectors have frequently fallen into hot search. As of May 16, Contemporary Amperex Technology Co.Limited(300750) fell by 30.78%, and the Nanjing composite index also fell by more than 20% during the year. How about the price performance after the crash
Zheng chengran: commonly referred to as Ning portfolio index, in fact, it is a partial growth direction. Combined with its valuation, certainty of future performance, growth space and other comprehensive considerations, I think photovoltaic is the most cost-effective, followed by military industry, electric vehicles and semiconductors. This is my personal ranking of cost-effective.
Yao Zhipeng: from a large perspective, the key reason for the strong rebound of the new energy sector in the near future is that its valuation has been at a very cost-effective level. After the continuous adjustment of the market, the investment cost performance of new energy vehicles and other tracks is gradually improving.
Cui Chenlong: at present, the overall valuation of A shares is at the bottom of history, and the pessimism of the market is fully released. Although we do not rule out whether the above negative factors in the short term will cause a short-term correction if further fermentation, we tend to judge that the current market has high allocation value in the current position.
As a typical growth sector, the new energy sector has been more affected by the recent interest rate increase environment. At present, the valuation level of the whole sector is at the bottom of history. At the same time, the industry fundamentals are very good, with large long-term development direction and space and high certainty. Therefore, I personally think the overall cost performance of the sector is very good.
Cao Chunlin: since this year, the new energy sector has adjusted along with the market. The valuation of the sector in 2022 has fallen to a reasonably low level. The new energy sector has good growth in the future, and the time value of the sector is high.
At present, the price performance of the sector is in a good position.
Optimistic view of this round of new energy
not pessimistic about the future
China Fund News: in your opinion, how persistent is the rebound in the new energy sector? What do you think of the future market? What risks need to be vigilant at the same time
Zheng chengran: personally, I am optimistic about this round of rebound in new energy. The core factor is that the global energy reform is in the early stage of development. Looking at Europe, in fact, the development of its new energy is still in the stage of explosive growth. Later, major countries including China and the United States will participate in this change. Later, this explosive growth will appear at a certain point in time, thus driving a sustained and high growth rate all over the world.
Including the previous analysis, the decline of the new energy sector since this year is mainly due to the comprehensive factors of trading chips and valuation. However, if these factors are alleviated and the fundamentals continue to be strong, the future market of good companies in the new energy sector is worth looking forward to.
Perhaps the biggest risk comes from factors such as trade policies between countries.
Cui Chenlong: this round of rebound is more about the repair of panic in the early stage, so the sustainability of the future needs to further track the fundamentals of the industry. Judging from the current fundamental situation, we tend to think that the industry is likely to maintain rapid growth in the future. In the absence of other sudden negative factors, we expect the sustainability of the rebound to be better. In terms of risk, under the pressure of high inflation, will the progress of interest rate hike in the second half of the year accelerate faster than expected. If accelerated, the global equity market will face greater short-term pressure.
Yao Zhipeng: from the perspective of short cycle, the current sector is in a state of rapid rebound. Because the composition of the bottom is actually a long-term process, which is not achieved overnight. It needs to vibrate at the bottom for a period of time.
In view of the future trend, from the basic operation industry status, the new energy and new energy vehicle sector will gradually turn upside down. In other words, this round will be a partial reversal, and may be an opportunity with a long term and high level, but it is worth noting that it does not represent a short-term situation.
First of all, from the PE value of TTM, the current sector is in a very low position. From the state of historical valuation minus 1 times the standard deviation, even after a violent rebound recently, this figure may reach negative 0.8 times the standard deviation from negative 1 times the standard deviation, which is still at a relatively low level.
Second, the endogenous demand of the industry continues to release. The recent price rise of new energy passenger vehicles has not had a great impact on orders, and the endogenous demand of the market is still releasing. According to the data of the passenger Association, the wholesale penetration rate of new energy vehicle manufacturers reached 29.6% in April 2022, 18 percentage points higher than the penetration rate of 11.2% in April 2021 and 4.5 percentage points higher than the penetration rate of 25.1% in March this year. From the history of the development of various emerging industries, after the penetration rate exceeds 15%, the process of more than 70% or even full penetration is completed at a faster speed, and few emerging industries peak near 20%.
So we think the next space is still very large.
Ren Linna: first of all, it should be emphasized that in the long run, the new energy sector deserves investors' attention from the three dimensions of "economy", "product power" and "energy security".
In the short term, sustainability includes space and time. We do not judge time. Space depends on the matching degree of Fundamentals (growth rate, profit quality, etc.) and valuation.
sun haozhong: standing at the current time point, I am not pessimistic about the future. After the adjustment at the end of April, in the direction of new energy vehicles, for example, lithium resources have basically fallen to about five times PE, and then some companies with a poor pattern in the midstream have fallen to less than 20 times that of this year, and those with a better pattern have also fallen to less than 30 times, This is still a relatively low valuation level in history.
In the short term, although the interest rate of us 10-year Treasury bonds has dropped, the price of bulk commodities is still at a high level, superimposed with geopolitical conflicts, so it is difficult for inflation expectations to fall quickly. The process of interest rate increase and table contraction of the Federal Reserve may exceed expectations, and the interest rate of us 10-year Treasury bonds will probably rise again. This process may suppress growth again, so for the direction of growth, The Fed's policies, including the trend of the interest rate of us ten-year Treasury bonds, are still a key observation factor.
Cao Chunlin: new energy sector was affected by the epidemic in April, but if the epidemic can be well controlled, most of the capacity losses since April can be made up, because the supply bottleneck of new energy sector this year is lithium resources, and the production of lithium is not affected by the epidemic; Of course, another important observation point for the new energy industry is demand: in the early stage, due to the excessive rise of lithium resources, the battery cost has increased significantly, and the price of new energy vehicles has also increased accordingly. In addition, the market is worried that the demand is not good, which is also one of the reasons for the sector adjustment.
However, in fact, we have observed that the demand for new energy vehicles has not been greatly affected. On the contrary, the undelivered orders of many vehicle enterprises are still rising. The reason is that new energy vehicles are in the rapid development trend of electrification and intelligence, the technology of the industry is developing rapidly, and consumers' interest in intelligent electric vehicles is rising rapidly. Therefore, although the rising cost is a problem, it does not affect the development trend.
On the whole, we are optimistic about the future development of new energy vehicles. The new energy vehicle industry is one of the few industries that can see the future trend, space and industry growth clearly. Chinese enterprises are in the leading position in the world, and the investment value is very prominent.
However, any fast-growing industry will also fluctuate, which is the law: for example, the rapid expansion of production capacity in some segments of the industry leads to the imbalance between supply and demand; Industry technology iteration will have a significant impact on some segments or individual stocks; There are still some preferential policies in the new energy vehicle industry, and the fluctuation of preferential policies will also have a certain impact on the industry in the short term.
optimistic about lithium, photovoltaic and new energy operators
China Fund News reporter: specific to the internal segments of the new energy sector, which segments are you more optimistic about? Why
Zheng chengran: relatively speaking, I pay more attention to photovoltaic. As we often say, "spring theory", that is, the spring with the best compression elasticity has the strongest toughness. On the one hand, the decline of silicon material price is expected to bring a strong rebound in middle and downstream manufacturing; On the other hand, the demand for photovoltaic energy is also multi-point in the world. Not only Europe, China, the United States, Southeast Asia, South America and other regions are optimistic about photovoltaic energy.
The growth of electric vehicles is relatively more concentrated in the outbreak of Europe and China. Therefore, the volatility and certainty on the demand side need to be observed again. If the marginal demand weakens and rises more before, the valuation of the electric vehicle sector will bear some pressure.
Cui Chenlong: in the direction of new energy, we are optimistic about three sub tracks: lithium battery, photovoltaic and new energy operators. Photovoltaic is the production end of clean energy, which is the representative technology of the production end, and lithium battery is the representative technology of the energy storage end, that is, the application end. The new energy operator is an industry with long-term stable operation and stable growth, and there is a lot of space. We are still in the early stage of the energy revolution, and the development space of the whole industry is huge, and the above three specific directions represent the development direction of advanced science and technology in the development process of the whole industry.
Among them, the essence of photovoltaic is closer to semiconductor, and its efficiency will be improved with the increase of dressing machine. As the lightest metal in nature, lithium has the highest potential energy density in theory, and there is a huge space for technological imagination in the future. The stable operating characteristics, sustained growth and high growth space of new energy operators have great attraction.
Yao Zhipeng: on the whole, we are more optimistic about the new energy vehicle sector. Recently, the market has fluctuated greatly, which is a key issue. But instead of discussing what happened in the past, we should focus on which types of assets are likely to gain greater market value space and increment in the future trend.
With regard to new energy, at the level of logic, we prefer middle and downstream enterprises, or we are more optimistic about downstream enterprises at this time point than before. Because now it has been gradually seen that the certainty of downstream enterprises is significantly improved, especially through terminal price transmission, which has been continuously verified. Moreover, many enterprises are likely to face a state similar to that shown in the previous passenger car sharp upward cycle, that is, the sales volume moves up rapidly, and the profit margin and scale effect also appear rapidly.
From the medium and long-term perspective, except for a few assets such as oil, the vast majority of companies that maintain a large market value for a long time in almost all global assets are midstream or downstream companies. Therefore, we believe that the middle and lower reaches of the new energy sector should and will continue to shape some long-term core competitiveness by relying on factors such as product supply differentiation and cost optimization ability. Therefore, we believe that the middle and lower reaches of the whole new energy sector may be the areas that need the most attention.
Lu Bin: at present, "carbon neutralization" is a policy with high global consensus. Therefore, we believe that the whole "carbon neutralization" sector has long-term opportunities. For example, the current market penetration of new energy vehicles is still relatively low. We believe that the development prospect and development space in the long run are very broad. However, while we are optimistic about the whole theme of "carbon neutrality" for a long time, we will also continuously and dynamically evaluate the fundamentals and valuation of various fine molecule industries to help investors capture investment opportunities that are relatively undervalued in the market and avoid fundamentals and valuation risks as much as possible.
In terms of risks, China's policy expectations have been relatively stable. At present, we are more concerned about overseas risks. Including geopolitical conflicts, commodity prices and the intensity and rhythm of the Fed's interest rate hike.
Ren Linna: preferred PV. The reason is very simple. The fundamentals are relatively strong. However, we suggest that investors should pay attention to the following points when studying and judging the photovoltaic industry: first, the global perspective. The key word driving the growth of photovoltaic demand is "economy". Photovoltaic is made in China and global demand. When studying and judging "economy", we can't just focus on China.
Second, from the perspective of industrial chain. The logic of photovoltaic industry is more important than that of individual stocks. Third, we should pay attention to the importance of the word "energy security".
sun haozhong: subsequent new energy investment, relatively speaking, in the direction of new energy vehicles, brand vehicles, batteries and some competitive and relatively good links, such as diaphragm and negative electrode, deserve attention. In the direction of photovoltaic, relative attention is paid to integrated construction, inverter, adhesive film, etc.
Cao Chunlin: lithium resources have risen sharply, affecting the profit distribution of each subdivided field. Therefore, in the short term, lithium mining stocks with more mineral resources will perform better, and battery manufacturing will be under certain pressure; In the medium and long term, we are still optimistic about the leading battery enterprises and battery material enterprises in the world; The overall competitive pressure of automobile enterprises is still relatively large. Only those enterprises that are far ahead in the wave of electrification and intellectualization can have the opportunity; After electrification, intelligence is booming, and the intelligent track also deserves special attention.
growth style is becoming more attractive
China Fund News reporter: looking forward to the future, can growth stocks continue to lead the rebound market what kind of situation may the short-term market present
Zheng chengran: personally, I'm more optimistic about growth stocks. I understand that in the long run, the stock is a weighing machine. The long-term factor that determines the rise and fall of the stock is the profit of the enterprise and the expectation of future profit. Because the fundamentals of growth stocks are relatively dominant and the clarity of future growth is relatively strong, I am more optimistic about the future space of growth stocks.
In the short term, the market may have a situation of cross fluctuation and upward, and show a structured market. The structure here is not only reflected in the structural differentiation between growth and value, but also shows a relatively large differentiation even within the growth style.
Yao Zhipeng: we believe that the short-term trend of the market often has some randomness or many uncontrollable factors. In fact, this sentence is also mentioned in the book by an investment master, that is, Howard Marx's cycle. As he said, "in the face of cycles, we may never know where to go, but it's best to understand where we are." Where the hell are we? Is it at the bottom of the cycle now? To what extent do our emotions affect our current choices? In such a large cycle environment, maybe these are what we need to calm down and think about.
At present, high-quality growth stocks have ushered in sowing time, and the valuation of growth direction has been very cost-effective. Excellent growth directions, such as leading enterprises in the middle reaches of electric vehicles, have been below the historical average even if only static valuation is considered.
Cui Chenlong: during the rebound of growth stocks, we need to continue to track the fundamentals of specific companies and subdivided industries. We firmly believe that prices always fluctuate around value, and long-term prices will fluctuate around intrinsic value. Therefore, the fundamental situation of specific industries and targets is the decisive factor of long-term investment.
The short-term market still needs to pay attention to the progress of the Fed's interest rate increase in the second half of the year. Although more contribution to the market is volatility, the short-term factor may have a greater impact.
Lu Bin: at the beginning of the year, we thought that this year's opportunities might be value return and high-quality growth. However, with the valuation repair of value stocks and the significant adjustment of the valuation of growth stocks in the first four months, we believe that high-quality growth stocks are more attractive to us at present, so the main line of the market is likely to return to high-quality growth in the second half of the year. Including new energy, military industry, medicine, Internet and other growth stocks, we think we have been able to find rich investment opportunities.
sun haozhong: since the beginning of the year, the style performance of the overall value category is relatively good, while that of the growth category, such as new energy, semiconductor, military industry, etc., is relatively weak. At the current time point, I am not pessimistic about the future. After the adjustment at the end of April, the valuation of new energy, electronics and military industry has been relatively low in the past five years.
In terms of value style, because China's economic data in April is still not ideal, including social finance data, people's expectations for China's stimulus policies have increased significantly, so the whole value sector may still have performance opportunities. Therefore, I am not pessimistic about the overall market. That's why. In conclusion, the value will still be catalyzed by policies. Although the growth has rebounded, the valuation is still in a relatively low position.
In the short term, when the interest rate of US bonds is relatively high, the market relatively prefers undervalued assets, which is relatively dominated by the introduction of some stimulus policies in China. As for the growth direction, although the interest rate of us 10-year Treasury bonds has dropped, the price of bulk commodities is still at a high level, superimposed with geopolitical conflicts, so it is difficult for inflation expectations to fall quickly. The process of interest rate increase and table contraction of the Federal Reserve may exceed expectations, and the interest rate of us 10-year Treasury bonds will probably rise again, which may suppress growth again. Therefore, the policy of the Federal Reserve, Including the trend of interest rate of us ten-year Treasury bond is still a key observation factor.
For example, Cao Chunlin's real growth will be disturbed by any other factors in the market, which is not correct.
We believe that China's policy cycle has turned and the market valuation will begin to bottom out, but we should be vigilant against the risk that the performance of individual stocks is lower than expected in this round of economic downturn. The opportunities of individual stocks that can be realized by performance growth begin to appear. In the future, individual stocks will be differentiated based on performance, and the overall opportunities of the market may have to wait until the overall macroeconomic recovery begins.
note that the new energy sector fluctuates greatly
investors have the best layout and fixed investment
China Fund News reporter: for investors, how to choose the fund for the opportunity of new energy layout? How to operate? What should be done if the holding encounters obvious pullback
Zheng chengran: new energy sector is naturally volatile. It is suggested that investors should spend more time to understand the investment framework and philosophy of fund managers before layout to see whether they can resonate with their own cognition and agree with his ideas; Second, we should make psychological expectations for the possible decline of net worth of products. It is best to invest with long money that we can't use temporarily, so that when we encounter withdrawal, our psychological feeling will be better.
Cui Chenlong: it is recommended that investors choose recognized funds and fund managers to invest after knowing the investment ideas of different fund managers in detail in combination with their own economic conditions.
In terms of operation, fixed investment is more recommended, which can smooth the short-term fluctuation of the market by prolonging the investment time, and the experience is relatively better.
If investors encounter obvious pullback, it is recommended to hold firmly on the premise that the investment philosophy of funds and fund managers has not changed. If there is still spare money, they can increase their positions at a lower position and obtain investment returns through long-term holding.
Yao Zhipeng: in the face of large market retreat, investors can enter the site by fixed investment. The biggest significance of the fixed investment mode may also be that if you want to buy by yourself at the bottom of the market, you may "shake your hands" and have no way to start, but you can "start" at such a position through the fixed investment. In fact, from the perspective of a relatively long cycle, if you buy in the area at the bottom, it will have a great impact on the subsequent investment income. Therefore, I think the significance of using fixed investment mode to enter in batches should not be underestimated.
Lu Bin: as a growing industry, the new energy industry itself has great changes and fluctuations. Therefore, when investors invest in new energy funds, on the one hand, they can choose new energy theme funds with good long-term performance. On the other hand, they can also use fixed investment and other investment tools to share the investment cost and reduce the volatility of the investment portfolio relative to the market.
Finally, we all have a high consensus on the long-term development prospects of the new energy industry, but market fluctuations are inevitable in this process. Therefore, investors should reasonably choose fund products according to their risk tolerance and venture capital preference, and use long-term money for long-term investment.
Ren Linna: objectively speaking, the theme fund has relatively large short-term fluctuations due to the limited investment scope and concentrated shareholding scope.
For individual investors, when investing in new energy theme funds, lengthen the investment cycle, "fixed investment" is a relatively feasible way.
Cao Chunlin: new energy is an industry with long-term growth prospects on the whole, but the industry has its own rules. The industry will be particularly popular in the short term and will have short-term twists and turns. Therefore, the market will give a high premium at some times and be particularly pessimistic at some times. Investors should stick to the general trend and avoid chasing up and down under the influence of market sentiment.
