A couple of days ago, we discussed how to view the recent adjustment in the US stock market: the core idea is to look at the small-scale valuation adjustments in the market, rather than a significant overall collapse (like a bubble burst). Previously, I mentioned my framework for viewing stock market adjustments is: "killing valuations, killing performance, killing logic." 1) Killing valuations means adjusting stock prices that have been elevated through valuation expansion back to a relatively reasonable level; 2) Killing performance refers to actual performance falling short of expectations, or even a blow-up, where the fundamentals are insufficient to support the stock price; 3) Killing logic is the most critical, referring to the core investment logic of a company or industry being destroyed, such as major policy adjustments, failed technological routes, or unsustainable business models. It is clear that most stocks are in a state of killing valuations, with a small number of stocks experiencing performance that falls short of expectations or guidance, leading to killing performance, but killing logic should still be quite far off. At the beginning of the year here.