In recent years, a particularly noticeable phenomenon has emerged in the A-share market: whenever a new concept or technology emerges, almost all stocks related to this concept or technology in the A-share market will experience a significant surge, with smaller circulation stocks seeing the greatest gains.

For instance, take the current hot topic of artificial intelligence (AI). Industries that are associated with AI have seen a round of significant increases. Yesterday, it was the AI application sector that rose, which includes media, gaming, healthcare, and other sectors that can integrate with AI technology to improve industry efficiency.

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But what is the underlying logic?

Looking at the current market situation, it seems that the application of AI technology will lead to substantial performance growth for these related industries and companies in the future, making the companies' prospects appear more promising. Is this really the case? By learning from history, we can uncover the truth.

Take new energy vehicles as an example. We can see that many companies did indeed make money in the early stages of the development of new energy vehicles. However, the situation changed in the mid to later stages. How many companies in the new energy vehicle sector are profitable now? XPeng Motors just suffered a loss of tens of billions of yuan, and there are only a few car manufacturers in the new energy vehicle industry that are truly making money.

Going further back in time, several decades ago, the advent of smartphones also led to the emergence of countless smartphone manufacturers. Now, only a few manufacturers in the world can establish themselves and make money. The smartphone manufacturers that can make a significant profit are Apple, Samsung, and Huawei. The profits of other manufacturers are as thin as paper.

Upon careful consideration, it's terrifying to realize that each technological revolution has greatly increased the world's productivity. However, the vast majority of companies participating in this wave of the era did not make much money, and the money was ultimately divided among a few companies in the industry.

That is to say, no matter how advanced the new technology is, the ultimate outcome is inevitably that only a very few companies truly benefit. Most companies can consider themselves lucky if they can get a small share. Therefore, we can see that many companies in the current market with AI-related stocks are experiencing a surge in the stock market, which is essentially a speculative bubble.

99% of these AI-related companies are destined to be eliminated in the future competition of AI technology. The vast majority of companies will not see a significant increase in performance due to this new technology. If you are a media company that has reduced costs using artificial intelligence technology, I am also a media company, and I can also use AI to improve efficiency. As a result, you can lower product prices, and I can also offer discounts. In the end, neither you nor I have significantly improved our performance.

However, the overall productivity of society has increased. People's work and life efficiency has greatly improved. Only a few giants in the related industries and companies have gained huge dividends. Therefore, not participating in the AI concept speculation now is not a loss, because it is originally a bubble. Unless we can find companies that will truly become giants in their industry in the future, our AI speculation is destined to be an extremely dangerous game.I believe that the field of artificial intelligence is worth investing in, but the best way to invest is in AI index funds. Investing in AI stocks is extremely risky because it is difficult for us to predict which companies will come out on top in the future. Only a few successful AI companies will monopolize the market, while all other AI companies will become cannon fodder!

I will absolutely not buy AI concept stocks. I will wait for the AI concept to cool down for a while, and then buy a small amount of AI index funds. The current hype around AI is too hot, and I am determined not to participate at the moment.

Recently, another pig enterprise in the A-share market could not hold on, and that is Tianbang Food. It is preparing to apply to the court for reorganization and pre-reorganization. The reason is that the company is unable to repay its due debts. Tianbang Food has become the third pig enterprise to go bankrupt after Zhengbang Technology and Aonong Bio.

Data shows that Tianbang Food has short-term interest-bearing debt of 3.981 billion yuan, with only 676 million yuan in cash on hand. If the reorganization fails, Tianbang Food faces the risk of being declared bankrupt. The collapse of pig enterprises one after another indicates what?

It indicates that the current situation is the darkest before dawn for the pig farming industry. Those pig enterprises that can hold on and not fall will inevitably usher in the prosperity of the industry in the future. The problem is that many pig enterprises are already on the verge of collapse. Recently, the livestock breeding sector in the A-share market has started to strengthen, and one of the underlying reasons is that the market expects the pig farming industry to accelerate the removal of production capacity, and the pig industry is likely to warm up.

In the past few months, the national inventory of breeding sows has continued to decline. Some experts predict that the supply of pigs will gradually decrease in the second half of 2024, which is conducive to the rise in pork prices in the second half of the year. In fact, no one can accurately predict whether pork prices will soar in 2024.

However, one thing is certain - the livestock sector is currently at the bottom of the cycle, and the day when the industry emerges from the bottom is not far off. The same is true for our current A-share market, which is currently at a major bottom, and the footsteps of the bull market are getting closer and closer.