How to determine if the market has bottomed out can be based on the following observations:
1. When the market is at a low point and accompanied by high trading volume, it often indicates that panic selling may be nearing its end. High trading volume reflects a large number of investors trading at low levels, which may mean that selling pressure is gradually being released.
2. Pay attention to whether long-term value investors like Buffett and Bridgewater Associates are starting to increase their holdings in quality stocks. The movements of these well-known investors are often seen as market indicators, and their buying behavior may suggest that they believe the market has investment value.
3. Market bottoms are often not achieved in one go; they may go through multiple rounds of tug-of-war between bulls and bears. Therefore, even if the market shows a first rebound after a decline, it does not necessarily mean that a true bottom has formed, and investors should remain cautious.
4. For long-term investors, a staggered approach to buying is a more prudent bottom-fishing strategy. By buying in batches, one can reduce the cost of buying at a single point in time while avoiding the risks that may come with a one-time heavy investment.