CITIC Securities: AI narrative only affects the market slope rather than the trend

According to the CITIC Securities Research Report, the market volatility has increased since October, but the success rate of timing is not high. The reason behind this is that the underlying structure of incremental funds is changing, and the steady absolute return funds continue to enter the market to reduce the effectiveness of traditional aggressive strategy timing. The real important variables at present are the stability of the overseas environment of enterprises and AI, which involves Sino-US relations and the investment and construction process of AI infrastructure. At present, not only the TMT sector, but also non-ferrous metals, chemical industry, and electric new industries are directly or indirectly affected by the AI narrative, and these sectors account for more than 60% of institutional positions. In this case, the idea of adjusting positions is not to deliberately avoid the AI narrative, but to try to choose the varieties with an upward trend at the bottom of ROE. The AI narrative only affects the slope of the market rather than the trend.