Recent CPI data has performed well, bringing positive signals to the market. In this context, how should investors seize the upward trend?

The essence of an upward trend is the choice of capital flow. We need to discern whether this is value discovery or a short-term surge. Value discovery is usually supported by solid fundamentals and tends to show a sustained strengthening trend. Even when facing adjustments, as long as the fundamentals remain good, assets often recover quickly and continue to rise. In contrast, short-term surges often lack sustainability and usually struggle to maintain strength after peaking with favorable news.

When selecting investment targets, you can focus on the following aspects:

1. Innovation: Look for unique or scarce projects in the market, as these projects often have enormous imaginative space and market expectations.

2. High-frequency demand: Focus on popular applications, core functionalities, important protocols, or infrastructure projects. These areas have strong demand, which can continuously attract capital and maintain market activity.

3. Strong performance: Follow strong assets and abandon those with weak performance. The principle of the strong becoming stronger has been repeatedly proven in the market, consistently yielding better returns in terms of both time span and price increase.

In the short term, the 50 basis point rate hike on Thursday has almost become a foregone conclusion, with market focus shifting to Federal Reserve Chairman Powell's speech, particularly regarding the outlook for future rate hikes. It is worth noting that after a tumultuous year, the market may be on the verge of entering a relatively calm period. With a reduction in macro influencing factors, even in the absence of significant positives, avoiding major risks is also a positive signal.

Looking ahead, the market may enter a relatively stable phase. In this environment, investors should remain vigilant, continue to focus on investment opportunities in strong sectors, and closely monitor market changes to adjust strategies in a timely manner. Steady development may be the goal we should pursue in the current market environment.