Introduction: It occurs to me that since the post-holiday period, I haven’t had a proper sit-down conversation about our big casino. With today’s bloodbath as the backdrop, Master Chi wants to take this opportunity to say a few words. The content is fairly concise — just a few key points you absolutely need to know. And yes, you read that right: points you absolutely need to know.
After all, every investment in your life carries the potential to fundamentally change your fate. Respect yourself. Guard your wealth carefully. Always understand not just what is happening, but why.
Here are the key points:
- What’s behind the leading stock massacre of the past two days?
- What will I do in the short term?
- Why are the 15 leading stocks still a good choice?
Main Body:
1 — What’s Behind the Leading Stock Massacre of the Past Two Days?
First, I wonder if you still remember the three risk factors Master Chi mentioned every time he talked about his selected 15 leading stocks:
- The broad market approaching 2800 points
- The timing falling around Chinese New Year
- The US market breaking through, establishing, and adjusting upward (plus the health of the top baijiu king)
In Master Chi’s view: the closer these risk factors converge and ripen together, the higher the probability of a violent market correction. They carry equal weight. Right now, points one and two have both been triggered — so what happened today is genuinely no surprise. It falls entirely within the expected range.
Why? Because anyone — any player, any institution, any capital — who has made enough money will eventually want to cash out. Remember this: any party that has made enough money will inevitably reach that moment of wanting to lock in gains. This is certain and beyond doubt.
Especially for the northbound capital and the large public funds that helped prop up these leading stocks this cycle — they’ve earned returns of 40% or more in just eight short months. They have no reason to keep holding at the top. Naturally, they’ve started cleanly and collectively reducing their positions, securing their profits.
It’s that simple. There’s no cosmic secret to it.
Of course, some readers will say, “Master Chi, you’ve got it wrong — the top baijiu king is still a great company; this is a chance to buy more.” Let’s skip the unnecessary arguments and ask ourselves one soul-searching question directly:
After these past two days of selling, given the current total market cap — do you think new money will dare to come in?
My answer: Absolutely, there will always be iron-skulled risk-takers who step in to catch the falling knife. No question. And among them, there will be notable large-capital players too.
But that’s not the point. The real question is: can this capital generate enough momentum to reignite the fire? Can it summon several hundred billion in concentrated force to push the market back up in one shot?
If it can, the rebound will be fierce — another shot of adrenaline for the market. But if the incoming capital is merely a drop in the bucket — a modest hundred billion or so — that’s where the danger lies.
Because if you’re currently a major player sitting on a hundred-billion-yuan position with 40% gains, your mindset will be: “To hell with it — I’m dumping my chips on whoever’s buying. I’ve made enough. ‘Value investing,’ ‘15 leading stocks’ — I’ll step out first and think later.”
2 — What Will I Do in the Short Term?
Previously, someone in my knowledge community asked me a similar question: in the current environment, should they enter the market?
Here’s what I told them: Either wait for the 3600–3800 range to play out completely before making a move, or accept that around 2600 points, a meaningful correction is practically guaranteed — because the big money that bought at the bottom has made far too much, and they will exit. Wait for them to finish exiting, then enter.
That said, those were suggestions for someone else. Let me talk about my own approach.
Those familiar with me know I entered East Money (东方财富) at a cost of 27.878, and it is my absolute core position — aside from a certain ST stock. This means that even after taking today’s beating, my profit remains quite decent.
But I’ll be watching the next two weeks of price action very closely. My basic logic is:
- If the broad market holds up reasonably well, and the top baijiu king plus other leading stocks stabilize and rebound — I’ll stay put and observe.
- If the broad market continues to collapse, and the stabilization and rebound in the leading stocks looks weak and tentative — I’ll retreat.
No attachment to positions. I’d rather wait for the dust to settle than fight a losing battle. Of course, this is purely my personal approach — offered as a reference, not as advice.
One more critical point: I will be watching trading volume extremely closely over the next several days. Experienced investors will immediately understand why. If you think it through, you will too.
So if you’re still in the market, Master Chi genuinely thinks it’s time to reconsider your short-term positioning: either step back from the risk zone temporarily, or steel yourself for a six-month hold and wait for the next wave to push the market and the 15 leading stocks back up again.
3 — Why Are the 15 Leading Stocks Still a Good Choice?
At this point you’re probably wondering: “Master Chi, why do you still hold up the 15 leading stocks as your focus? Are they really that good?”
Yes. That good. More stable and reliable than any other picks.
On what basis? On the basis that they’ve been tested and proven. They’ve earned the right to be called true aircraft-carrier-class blue chips.
Here’s something you need to understand first: in today’s era, for any party — even for the house running the big casino — simply skimming transaction fees is no longer enough. Even ordinary retail investors no longer believe that holding speculative stocks or small-caps will make them rich. Everyone is chasing short-term trading gains.
So there had to be a framework where the big market makers profit, the leading stocks benefit, and retail investors can slowly and steadily earn their modest returns — a three-way win.
That framework is the 15 leading stocks.
Only they can absorb hundred-billion-yuan-plus flows from public funds while maintaining basic discipline — without doing something reckless that humiliates the big players backing them. This is absolutely critical. Try throwing that money at any other company: put in a hundred billion and you’ll lose dozens of billions to insider maneuvering. Only the inner circle can be trusted.
And only they are truly “good companies” in the full sense of the word — not trendy, perhaps, but genuinely deserving the title across the entire country.
This matters too. When you look at the 15 leading stocks today, there’s a sense of “powerful ordinariness” — they’re not fashionable, and they don’t have grand stories to tell. But they are simply good. How many private enterprises can claim to bloom for more than a season?
Take the top baijiu king. You can throw every criticism at it you want — but all it has to say is: “Less talk. Wedding banquets, business dinners, Chinese New Year — are you drinking me or not?” And that’s that. Raw power over clever maneuvering.
Trustworthy. Undeniably strong. Those two qualities alone are the hardest kind of confidence there is.
So when many people have asked me — “Master Chi, why did you evolve from being a fan of speculative stocks into a value investor?” — my honest answer is this:
Fifteen to five years ago was the era of chaos in the casino. It was all about the “craft” of various market operators. There’s nothing to condemn about that — the conditions of the time made that approach most profitable for the house.
But now, the house has shifted to a new system. It has essentially designated 15 to 25 leading stocks as its inner-circle favorites, and the supporting resources, media attention, and capital channels are all flowing toward them.
So — why not just ride along on the coattails of that big scythe? Follow the current. Isn’t that the simplest path forward?
Conclusion:
Master Chi knows that today’s market action may have left you feeling bruised. But don’t worry.
In a single day, the damage to your position is at most 6–8%. In slow-bleed downtrends, the same percentage applies — you just don’t feel it as sharply.
What matters is that today’s slap woke you up. It snapped you out of the dream that making money is easy — and that is worth something.
In your investment life going forward, no matter what assets you hold, you will inevitably experience short-term swings of 20% in either direction. That is not what matters.
What matters is: have we caught a tailwind that, when we look back someday, will reveal that we’ve been quietly earning 5% per month — or more?
If yes — that’s right, and that’s enough. Everything else is just the necessary turbulence of riding the waves.