Investment Advisor Market Watch: A-shares experience a Black Thursday, how to operate on Friday?

On March 26, investment advisor Ma Zhiming pointed out in today’s market analysis that the darkest hour is just before dawn, and today’s market performance aptly confirms this. The entire trading session saw no resistance and continued to decline, with trading volume shrinking continuously. Those stocks that caused investors to chase high prices half a year ago have now fallen to bargain levels. The A-shares experienced a “reverse crash” this week.

However, Ma Zhiming believes that although market sentiment has hit rock bottom, there are a few objective points to consider. First, today’s single-day decline is about one-third of Monday’s drop. The current lowest point is still far from Monday’s low, but overall retail investor sentiment is more pessimistic than on Monday. This alone proves that the market has entered an irrational state, and investors are prone to impulsive decisions. Any thoughts of “cutting losses” or “bottom fishing” now are likely impulsive, and investors should operate cautiously.

Second, short-term trends are difficult to predict. Ma Zhiming judges that the short-term direction is uncertain, as the market is highly sensitive to short-term news, and the randomness and unpredictability of news greatly increase the difficulty of short-term judgment. Moreover, the current market is in an irrational state, with sudden large rises or falls being normal. Short-term trading—whether buying or selling—is hard to base on reliable evidence. For example, if you buy today and the market drops tomorrow, how should you handle it? If it rises tomorrow, should you take profits? If you take profits and it continues to rise, what then? Similarly, if you sell today and the market falls tomorrow, would you dare to buy back? If you don’t buy back and it rises the day after, how should you respond? These questions reflect the chaos of short-term trading.

Therefore, Ma Zhiming recommends investors adopt a long-term perspective. He states that if investors temporarily forget the panic caused by this week’s sharp correction, they will notice that many stocks that were highly sought after half a year ago have now returned to last year’s price levels, with valuations becoming reasonable again. Insurance, military industry, software, robotics—none of these sectors are excluded—they have all fallen back into acceptable price ranges. He emphasizes that the essence of investing is to judge the future, not to engage in short-term speculation. If we analyze and determine that a stock’s target price is 100 yuan, buying at 120 yuan is chasing the high, while buying at 80 yuan is bottom fishing. Investors should not give up the 80 yuan buying opportunity just because they worry it might fall to 70 yuan.

Thus, Ma Zhiming advises investors that if you are not a market “speculator,” you should maintain confidence in the full-year 2026 market. From the perspective of market sentiment cycles, we are currently at the end of a major adjustment cycle, characterized by fear of decline far exceeding attention to future opportunities. This psychological trait is a typical signal when each adjustment nears its end. Although short-term trends are hard to predict, the rhythm of market operation can still be observed. If a pattern of “decline—rebound—another decline—volume breakout” appears later, it could signal an attack. The current market is not the time for us to escape.