CITIC Securities: A-share market has entered a new phase and investment decisions should be made with a Bull Market mindset

Jinshi Data News on October 6th, CITIC Construction Investment Research Report pointed out that with the introduction of a combination of financial policies, A shares staged a 'miracle in 5 days', and market sentiment quickly moved out of the panic zone, entering the excitement zone in just 5 trading days. Currently, the market sentiment has returned to a high level after 3 years and entered the excitement zone after 4 years. The current high investor sentiment indicates that the A-share market has entered a new stage, and we should make investment decisions with a Bull Market mindset. Does the hot investment enthusiasm mean that the market is overheated and there are risks of adjustment? From the experience of 2015, 2019, and 2020, after sentiment enters the excitement zone, the market often continues to rise in the short term. Afterwards, with the decline of sentiment, there may be a certain degree of adjustment in the market, but this adjustment does not mean the end of the Bull Market trend. Based on the current position of the sentiment index, the current market sentiment at the end of September is equivalent to March 5, 2019 or July 7, 2020 in history.