After five months, Kweichow Moutai’s stock price returned to above 2,000 yuan on December 8. Correspondingly, liquor stocks also rose sharply on the same day, and stocks such as Laobaiganjiu and Yingjia Gongjiu had daily limit.
Why did the liquor stocks, represented by Kweichow Moutai, suddenly soar, and Kweichow Moutai once again stood above the 2,000 yuan share price? The reason may be related to a piece of news. On Monday evening, the high-level meeting proposed to implement the strategy of expanding domestic demand, promote the continuous recovery of consumption, actively expand effective investment, and strengthen the endogenous driving force for development. This is after last July, again focusing on consumption. The high-level meeting in July last year proposed to continue to expand domestic demand, overcome the impact of the epidemic, expand final consumption, and create conditions for residents to upgrade their consumption. After that, the consumer sector ushered in a continuous rise in the market, which lasted until the end of the Spring Festival this year.
Liquor stocks moved in response to the renewed proposal to expand domestic demand and promote consumption. Liquor stocks once again played a leading role in the consumer sector. In fact, in the previous hype of liquor stocks, liquor stocks have indeed emerged as the leader of the consumer sector. It is precisely because of this that, in the context of high-level efforts to expand domestic demand and promote consumption, will liquor stocks usher in another round of rising prices and usher in a beautiful spring?
In fact, the current rise of liquor stocks is not surprising. After all, after the end of the market in August and September this year, starting on September 27, liquor stocks have started a round of upward trend. At that time, I also wrote an article titled “Will investors need to intervene in the resurgence of liquor stocks?” “The article stated that “the phased bottom of liquor stocks is more obvious” and “investors can choose to intervene on dips.” Regarding the rise of liquor stocks at that time, I characterized it as a “rebound market.” Judging from the recent rise in liquor stocks, it is still the continuation of the “rebound market” of liquor stocks.
However, although the rising trend of liquor stocks continues, there is no possibility that liquor stocks will take another round of bull market. Liquor stocks can still only be regarded as a “rebound market.” Although liquor stocks adjusted for 7 months from February to September this year, the adjustment of liquor stocks was actually not sufficient, and the stock price of liquor stocks is still at a historical high. However, the growth potential of liquor stocks is relatively limited. For example, Kweichow Moutai’s performance growth is only around 10%, which determines that the room for upward expansion of liquor stocks is relatively limited. For example, Kweichow Moutai’s closing price on Friday was 2090 yuan, and the dynamic price-earnings ratio reached 52.8 times. This valuation has obviously lost its due investment value.
From a policy point of view, the market for liquor stocks is shameless. Policies support large consumption and expand domestic demand, but liquor stocks have been swayed by the news. This is obviously a shameless behavior. Policies support consumption and support expansion of domestic demand, but they do not support Chinese people drinking more alcohol. Liquor stocks do not belong to the concept of consumption, but belong to the “carcinogenic concept” and belong to toxic and hazardous substances. It is endangering the health of the people of our country, and it runs counter to the “Outline of the “Healthy China 2030″ Plan”. The country’s policy is to make the people healthy, but liquor has caused the people to cause cancer, and the people lost their lives. Faced with such carcinogens, how can policies support the expansion of liquor consumption? Liquor stocks are shameless and call themselves consumer stocks. Therefore, the market’s hype on liquor stocks has not received policy support. The construction of a healthy China is the biggest fundamental and policy aspect that liquor stocks have to face. The market’s hype on liquor stocks is actually going against the policy. And how can such stocks have spring? The market’s hype on liquor stocks is nothing but speculation.
Because of this, the market is hyping up liquor stocks. I advise institutional investors, especially investment funds, not to get involved. I hope that institutional investors, especially investment funds, can have more social responsibility and a sense of social responsibility. As an individual investor, you should also stay away from liquor and liquor stocks, and let yourself be a healthy person and a socially responsible investor.Return to Sohu to see more
Editor:
Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.
.