Liu Diangui of Guolian An Fund: After the March adjustment, fixed income plus products may have reached a good timing for allocation again.

Liu Diangui, fund manager of Guolian An Fund, stated: Compared to last year, the market environment this year has undergone multi-dimensional changes. Investment needs to shift from "valuation expansion" to "earnings growth." The significantly accelerated rotation of thematic sectors has increased investment difficulty. Ordinary investors should manage their asset allocation within their acceptable risk tolerance. Choosing high-volatility assets requires more caution to cope with a market landscape of heightened volatility.

From a macro and liquidity perspective, Liu Diangui analyzed that domestically, the moderately accommodative monetary policy continues, but its marginal impact on the market may be weaker than last year. Globally, driven by oil price-induced inflation, market expectations for tightening US liquidity have intensified, leading to a marginal tightening of global liquidity. However, the overall macro situation is not significantly different from last year. Although geopolitical conflicts bring uncertainty and concerns about stagflation, external disturbances are somewhat similar to last year's tariff disruptions. If these are only short-term effects, their ultimate impact on exports will be limited and can be monitored dynamically going forward. He remains optimistic about the overall market but notes that finding investment opportunities has become more challenging given current valuations are higher than last year.

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Liu Diangui further emphasized that the current market exhibits two core characteristics. First, the market's main theme will shift from "valuation expansion" to "earnings growth." Last year, sectors like AI and non-ferrous metals became market leaders based on strong earnings, while some thematic sectors saw significant valuation increases driven by long-term industry logic. This year, further realization of these industry trends is awaited, which may lead to increased volatility. The current market is relatively more rational, requiring a bottom-up approach to identify assets with solid earnings realization.

Second, the rotation speed of thematic sectors has significantly accelerated, greatly increasing investment difficulty. Liu Diangui stated that the speed of thematic rotation in the current market is noticeably faster than last year, with rapid intraday sector rotations even occurring. Most thematic sectors have already undergone a round of valuation increases. If there is a lack of actual earnings support and signals of industry realization in the future, it will be difficult to sustain rallies. Even for sectors with long-term growth potential, further valuation support requires seeing tangible actions like application rollouts, capacity expansion, and improving industry sentiment. This also means that investment strategies solely chasing thematic hotspots are more prone to mistiming in the current market, facing higher risks of buying at peaks.

For ordinary investors, Liu Diangui offered three specific suggestions: First, "Buying funds is better than buying stocks." As the proportion of quantitative trading increases and market reaction to news accelerates, some ordinary investors who still rely on "listening to rumors and catching rebounds" are prone to mistiming during sector rotations. Second, "Less trading is better than more trading." Although indices fluctuate within narrow ranges, intraday volatility of individual stocks has intensified. Frequent trading is susceptible to emotional-driven buying high and selling low. Investors should hold positions firmly based on earnings logic. Third, "Emphasizing balance is better than chasing high concentration." With faster thematic rotation this year, selecting thematic funds has become more difficult. Investors should shift from single, highly concentrated investments towards balanced allocation to better control drawdowns.

Additionally, Liu Diangui pointed out that for conservative investors, the post-March A-share adjustment might present a good entry opportunity, and they could consider investing in "fixed income plus" funds in batches.

Risk Disclosure: This only represents the market view of Guolian An Fund at that time. The market involves risks, and investment requires caution. This material is produced based on publicly available information deemed reliable by Guolian An Fund. Under no circumstances does the information or opinions expressed herein constitute investment advice to anyone, nor serve as promotional material or any legal document. Investors should not regard this view as the sole factor for making investment decisions, nor should they consider it a substitute for their own judgment. Investors bear the risks and consequences of any investment actions themselves.