Today, besides the dual-innovation indices continuing to hit new highs in several years, both the CSI 300 and CSI 500 reached new highs in over three years. Individual stocks and small-cap indices continued their adjustment. Among mainstream broad-based indices, the leading ChiNext Index rose 1.58% and the STAR 50 gained 1.24%, while the BSE 50 fell 1.37% and the micro-cap index dropped 0.91%. In CITIC Level-1 industry indices, media led gains with a 2.23% rise, followed by telecommunications (+1.99%) and non-ferrous metals (+1.87%). Apparel declined 1.45%, conglomerates fell 1.30%, and agriculture, forestry, animal husbandry, and fishery dropped 1.22%. A total of 1,434 stocks rose while 3,643 stocks fell, with a median gain of -0.87%. Five stocks including Daqin Railway, China Resources Sanjiu, Shanghai Petrochemical, Hengxin Oriental, and *ST Gaohong hit one-year lows during trading, with *ST Gaohong reaching a historical low. Meanwhile, 206 stocks including CATL, Zijin Mining, Hygon Information, Sungrow Power, Naura, Inovance Technology, Sany Heavy Industry, Sugon, Lens Technology, and EVE Energy hit one-year highs during trading. Among them, 60 stocks including CATL, Zijin Mining, Hygon Information, Sungrow Power, Naura, Inovance Technology, Sugon, ST Huatong, Lingyi iTech, and Inspur Information reached historical highs. During today's trading, CATL's market capitalization briefly exceeded that of Kweichow Moutai. By market close, Kweichow Moutai's market cap stood at 1.80 trillion yuan while CATL's was 1.79 trillion yuan, a difference of merely 10 billion yuan. Nine stocks hit the daily limit down, including Dazhong Public Utilities, Fujian Longma, Hangzhou Cable, Zhongtian Decoration, ST Fuhua, Taimushi, Dalong Real Estate, *ST Gauss, and *ST Gaohong. Fifty-two stocks hit the daily limit up, including ST Huatong, Shanghai Electric, Inspur Information, Huagong Tech, USI, TCL Zhonghuan, NASCO, Cambridge Technology, and Yangyuan Beverage.

The 424 convertible bonds averaged a 0.33% gain while their underlying stocks averaged a 0.39% decline. My main portfolio of 20 convertible bonds averaged a 0.15% gain while their underlying stocks averaged a 0.79% decline. Today I sold Jiacheng convertible bonds during trading and purchased Tianci convertible bonds. Ultimately, my account gained 0.15% in total. Today's convertible bond market clearly consumed premium, with both market-wide and my holdings showing underlying stocks declining while convertible bonds rose. Whether convertible bonds will eliminate premium or consume premium in the short term is difficult to predict.

This year's market has been highly fragmented. Perhaps because the market has grown larger while capital remains limited, the broad-based rallies or wave-by-wave advances of past bull markets are nowhere to be seen this year. What we see instead is technology-led so-called "young stocks" thriving while many "old stocks" led by Kweichow Moutai not only fail to rise but actually decline. Among the over 5,000 stocks in Shanghai and Shenzhen markets, 496 contain the word "technology" in their names, accounting for nearly 10%. This year, these 496 stocks with "technology" in their names have averaged a 43.29% gain, far exceeding the market-wide 33.36%. Without betting on the technology track this year, it's been difficult to outperform indices. Even previously leading small-cap stocks have recently shown fatigue, let alone convertible bonds.

So should one switch tracks? This reminds me of switching from the white-horse track I had held for several years to convertible bonds in 2021, which helped me avoid years of white-horse adjustments while gaining substantially from convertible bonds. However, such success also involved coincidence. Several subsequent attempts were unsuccessful, so things that seem easy in hindsight were actually difficult at the time. Either switch early or don't switch at all - the worst approach is switching when the market reaches its climax, getting slapped from both sides.

Young stocks cannot be valued by traditional metrics, just like Haitian Flavouring with its 100x PE ratio back then, but no one knows when value will return or how long that journey will take. Just as conservative Buffett abandoned US technology stocks and underperformed the NASDAQ in recent years. So the saying remains: there's no best investment method, only the method most suitable for oneself. Currently, I'm still sticking to convertible bond rotation.

As an aside, today I saw in my former colleagues' group chat that a past colleague took their golden wedding anniversary parents on a trip to Xinjiang. This touched me deeply, reminding me of when my own parents were alive - we rarely traveled together and spent more time apart than together. The few times we did travel were when my father took me to Beijing in my childhood. Now I've been retired for 10 years with ample time, but my parents are no longer here. It truly is: "The tree wishes to be still, but the wind will not cease; the child wishes to care for their parents, but they are no longer there."