The liquor sector can grow well, mainly because of the improvement in industry performance. This is very important. There is performance support for the rise will not fall back quickly.

Looking back at each round of historical market. Baijiu industry as a defensive non-cyclical industry. In the case of the economy is not particularly good with a strong resilience. Especially 1 is like Guizhou Maotai five grain liquor and other industry leading stocks. They are often ahead of the market to stop the decline and rebound. Even soon hit a new all-time high.

The important question comes. Can you still be bullish on the liquor industry? Or can the liquor industry continue to invest next year?

Many people see that many current liquor stocks have doubled or even several times. Feel the price is very high. On the contrary, most of the cyclical stocks are still at the bottom. Many cyclical stocks PE are also between a few times to a dozen times. But from the perspective of value investment. Guizhou Maotai and Wuliangye 50 times PE is not high. Although they have doubled in price, even several times. But for now it is still relatively safe. There is no such thing as a serious bubble.

Plus, it is currently in the pro-cycle of the economic cycle. That is, in the middle of the economic expansion period of the bull market consolidation. Now the market is still far from pulling out the main rising wave. So now continue to be optimistic about these defensive industries.

Many investors are very puzzled. Why these big money like to pull forty or fifty times Guizhou Maotai Wuliangye. Also not willing to pull a few times 10 times the bank stocks and brokerage stocks. In fact, like banks and brokerage stocks, only in the case of a very good economy to have investment value. Like the current economy is in a slow state of recovery.

There's not much value in investing in banks and brokerages. On the contrary, those relatively high valuation of Guizhou Maotai, Wuliangye more investment value. Because their annual average return on net assets of more than 25%. That means they are very high quality blue chips. Now more than 50 times the PE, in the eyes of many fund managers is far better than 10 times the bank brokerage stocks. So retail investors should learn from fund managers. Investing in valuable companies is a good strategy. To banks and brokerages, it is difficult for their performance to improve greatly. Growth is seriously insufficient. It is not worth holding for a long time.