Today (August 20), the market situation has become interesting. The Securities Journal wrote: “The market completed a pullback during the day and strongly rebounded in the afternoon“, the bull market atmosphere is indeed very strong, haha. In the afternoon, the semiconductor index made a strong move, leading the market to a direct V-shaped recovery, with a rise of 1.04%, closing at 3766.21 points. The technology innovation chips held by the host rose by 4.5% today, and the diversified ETF portfolio configuration has always been a persistent investment philosophy.The semiconductor industry chain is quite long, with the upstream, midstream, and downstream as follows:Upstream includes semiconductor equipment and materials, semiconductor materials: silicon wafers, photoresists, photomasks, electronic gases, polishing materials, wet electronic chemicals, sputtering targets, and packaging materials.The midstream involves semiconductor design and manufacturing, integrated circuit design, memory chips, logic chips, microprocessors, etc.Wafer manufacturing includes oxidation diffusion, photolithography, etching, cleaning, ion implantation, thin film deposition, mechanical polishing, metallization, etc.The downstream semiconductor applications include 5G communication, computers, big data cloud computing, the Internet of Things, industrial electronics, artificial intelligence, smart wearables, LEDs, and automotive electronics.It looks quite complicated and professional, with a long and complex industry chain.A key aspect of domestic substitution is the upstream semiconductor materials and equipment, which have strong technical barriers. Many photoresists and similar materials are controlled by foreign giants, including photolithography equipment.In terms of wafer foundry, TSMC’s foundry technology is clearly the strongest, with only SMIC in China.In downstream applications, we have a huge market, and there are many application scenarios in the future, with the first to land and monetize being applications.Recently, NVIDIA opened up the export of H20 chips, looking at the application scenarios in the large domestic market, using relatively inexpensive chips to squeeze the domestic semiconductor industry chain that is still in the development stage. For the domestic market, this is a castration of the semiconductor industry, causing many small companies to abandon independent research and development due to the influx of relatively cheap chips, which hinders the domestic semiconductor industry’s localization development.Without mentioning whether the Americans are adding random things to the chips.Recently, I have seen a lot of anxious bull market sentiment in the market, and I think there is no need to rush; it has just begun. If it is a slow bull market, do not be anxious; methodical investment is the way to go.I want to tell my few fans: a bull market does not mean it will always rise.From past historical experience, bull markets are the main reason for retail investors to lose money. If you plan to enter the market, please forget that it is a bull market now; guessing rises and falls is something many experts cannot do, so diversified asset allocation is the best way to achieve excess returns in a bull market.Do not be swayed by the anxious bull market sentiment; it is necessary to deeply understand a few points:1. Do not gamble on a single type of asset or industry.No one can predict rises and falls, especially now when the fundamentals are absent, and the market is driven by funds and emotions, a market with abundant liquidity. In a bull market, to be honest, even the blogger may not be entirely correct, let alone you who do not spend time researching.2. Diversified asset allocation and multi-industry sector allocation are the optimal choices to navigate bull and bear markets. In the current market situation, sector rotation is very fast; a single allocation in one industry can be very volatile and may not yield the highest returns. Using various strategies can help navigate through bull and bear markets.(1) Assuming there is 1 million, if 1 million is invested in 2-3 stocks, all in the technology or semiconductor industry, the volatility is too high. A “dumbbell strategy” can be adopted, allocating 600,000 to dividend assets or the CSI 300, and the remaining 400,000 can be allocated to robotics. One hand for defensive assets, one hand for offensive assets, able to attack and defend.(2) Assuming there is 1 million, to be more conservative, allocate 300,000 to dividends, 300,000 to gold, and the remaining 400,000 can be allocated to Hang Seng Medical + Robotics + Technology Innovation Chips. Using a core + satellite allocation method.