Recently, the investment community has been buzzing about a leading investor’s view on the Eastern market. He pointed out that the market is relatively undervalued, with a P/E ratio in the 10-13x range, and a P/B ratio of only 1.3, all at historical lows. He also mentioned that the market might reach the 5000-point or even 10,000-point mark. However, the reality is that the index is still hovering around 4000 points. Is this a market mispricing or an imbalance in investor expectations?

The key lies in how to understand the concept of "cheap." Low valuation indeed reflects market pessimism, but there is a trap in this logic: cheap assets do not necessarily rebound immediately. Comparing to the retail market, discounted goods may face deeper discounts later. Historical low data only indicates limited downside space and cannot directly predict the timing of a reversal.

Secondly, it’s important to recognize the difference in time horizons. Value investors typically plan over five or ten years, with their "potential" often referring to long-term prospects three to five years down the line. However, retail investors mostly hope to profit within weeks or months. This mismatch in time expectations causes a complete disconnect between the two sides.

Finally, and most critically: low valuation is merely a necessary condition for a bull market, not a sufficient one. It’s like dry wood that has the potential to burn but needs a spark to ignite. This "spark" could be a strong rebound in economic fundamentals, clear signals from policy, or a key turning point in market sentiment. Whether these catalysts are strong enough is something only insiders truly know.

Therefore, the brutal and clear answer is: long-term value investors and short-term traders are essentially not playing the same game. One is planning for growth over the next five years, while the other is tracking daily K-line fluctuations. "Seeing the right direction" in the market and "actually profiting" are two different concepts, separated by three hurdles: time cost, strategy execution, and psychological resilience.