Buying memes is actually practicing value investing!

It sounds contradictory at first. In a market dominated by narrative and liquidity, when both are scarce and constrained by high valuations, the so-called "value coins" are getting further and further away from the concept of value investing. When you firmly believe in value investing but have nowhere to invest, memes are a bearish option and a means of balancing value coins;

The value system of the currency circle needs to be reshaped and needs to be killed again and again. This is the objective process of the development of things. The contradiction between infrastructure saturation and lack of applications also occurred in the early days of the Internet. This bardo period is very painful and long. The real new narrative needs time to polish, rather than "saving" a so-called new thing and then selling it;

In the gap between narrative and liquidity, the profit-seeking stock funds will not stop. In 2023 and 2024, we saw Bitcoin and the top people in the food chain sucking blood from the industry. In the future, we will see memes "vampire attacks" on value coins. The transfer of liquidity and the reshaping of valuations will occur at the same time. The words of the copycat season have disappeared since then and have been replaced by "meme Season";

This is not an isolated incident. Every few years, there will be a bubble speculation on tail assets, referred to as "value de-anchored speculation". The previous speculation on shoes, NFTs, and Moutai... This time, the rise of the A-share market, the Russell 2000 of small-cap stocks in the US stock market, and the strength of the currency circle meme seem to have returned to a similar point in history.