In recent days, I've often heard people asking whether there will be a significant correction soon. In the past, I would have rambled on with a bunch of nonsense analysis, directly responding that there might be one, and it could happen at some point. Now, I don't care to say much about it.
In a bull market, 99% of the time, the purpose of a drop is to facilitate further upward movement. If there is a significant correction, it will definitely be accompanied by a strong rebound; this is determined by the ball theory. If it's a bear market, then a significant correction belongs to a one-sided decline, and the rebound peak after the correction will be lower each time. So in a bull market, whether it's a big adjustment or a small one, just maintain a buying position on the pullbacks; this is the only winning strategy in a bull market. Shorting in a bull market has two major drawbacks: either you get stuck for a long time or you miss out on a significant opportunity.
Besides, does the possibility of a big correction mean we shouldn't trade every day? Is staying in cash every day the safest option? There’s a possibility of a plane crash when flying, but does that mean we shouldn't choose to fly? Until that time comes, there’s no need to worry prematurely or be anxious. Once you've made the money at hand, then you can feel anxious or cautious; that doesn’t matter anymore.
A couple of days ago, didn't I post about the Fed cutting interest rates on December 18 and Japan raising rates? Around December 20, there might be a significant needle. The market won't enter a quiet period 10 days in advance like that. It's still early; we have 72 hours to adjust. At that time, we'll manage our positions and leverage well for the short term, and make defensive moves at the right spots. What’s there to be afraid of? Whether it's a big adjustment or a small one, just treat it with a normal mindset.