Have you ever read Memoirs of a Great Stock Operator？
Have you ever been inspired by Livermore’s story?
But that romantic time is long gone.
In 1945, more than 93% investors in U.S. stocks were retail investors. According to Haitong Securities Research Report, U.S. institutional investors held 93.2% of of the market value ,while retail investors held less than 6% of the market value.
From 93% to 6%, individual investors in U.S. stocks have been completely
upended. What’s behind it? Will the a-share also complete such a
transformation one day? What can we do in this trend?
All have to start at the beginning. In 1792,the American stock market was born. Early American stocks were a personal playground. Around 1920, with the rapid development of the American economy and the surge of corporate profits, the stock market boomed and the public began to speculate in the stock market. Livermore was the dominant man in that era.
From 1927 to 1929, the Dow Jones Industrial Average doubled. Driven by the effect of making money, a large number of people with spare money ran into the market, even borrowed usury to speculate in stocks. Do you feel it so familiar? Yes, just like the bull market in 2007 and 2015. At that time, retail investors held more than 90 percent of the market value of tradable shares, known as the “roaring twenties”.
Summary of view, the U.S. stock market completed the transformation over the past 100 years from individual investors accounted for the main body to eventually rely on pension and mutual funds entering the market. Without any manual intervention, just to select the optimal solution naturally, we have reason to believe that such a shift will also happen in our a-share market and other investment market in this process . In order to comply with and make good use of this regulation, what we should do is to convert personal funds into long-term capital, and then rely on the investment ability of professional institutions, and finally get rich benefits from the rise of the new economy. If we continue to fight in the market in the way of scattered soldiers as if the dinosaurs once dominated the earth in the ancient times, may be difficult to avoid the fate of elimination.
History repeats itself, and opportunities never stop!
Recently, the well-known Us investment institutions Mangrove Capital Partners and Eight Decimal Capital participated in the debut of digital currency CST.
CST, or CCI Security Token, has a total issuance of 500 million, and will never be issued more. 60% of them ,or 300 million are publicly subscribed for the STO project circulation use of CCI asset digital platform, 20%, or 100 million, is held by CCI platform, 10%, or $50 million for the expansion of STO cooperative project, 10 percent or 50 million, for community development awards.
From the perspective of investment rotation distribution, in May, most active vestment institutions still kept their focus on round A and the previous round or early stage, accounting for more than 53%. The market need you to stand in line every day, a false move and everything could be lost. The first round of investment subscription is one of the best ways to invest! Let’s look forward to the wonderful performance of CST after its release!